Major UK nightclub operator seeks administrators

16 January, 2024

The UK's leading nightclub operator is considering seeking assistance from administrators due to financial challenges stemming from increased expenses.

Rekom UK, managing 46 venues including popular names like Pryzm and Atik, is exploring a restructuring plan that might result in the permanent closure of some establishments.

The company highlighted the past year as particularly arduous for the late-night sector, citing escalating costs that have impacted its younger clientele and posed trading difficulties.

Peter Marks, chairman of Rekom UK, said:

"[While] the government's Autumn 2023 Statement saved us £120,000 on our £5m rates bill, it meant that we had to find an extra £2m in wages.

Not only that, the cost of goods and energy have also seen inflation-busting rises. This has led to us having to accept that the group cannot continue in its current structure."

Having submitted a notice of intention to appoint administrators for various UK businesses, Rekom UK aims to create a "breathing space" enabling collaboration with lenders, landlords, and stakeholders to devise a sustainable path forward.

Marks added:

"It is not all bad news. We still have a core of successful club and bar businesses and our Nordic brands, Heidi's Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.

"But we must go through this restructuring to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs."

Formerly known as Deltic Group, the company underwent a change in ownership when it was acquired by Scandinavian firm Rekom in December 2020.

It's important to note that this development does not affect Rekom's Nordic division, which oversees nearly 150 establishments. In a similar vein, Revolution Bars Group recently closed eight sites across England, attributing the decision to the cost-of-living crisis impacting the spending capacity of its younger customer base.

Source: The Caterer

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