The firm operating the transformed Kensington Roof Gardens recorded a £26m deficit following the venue's relaunch as an exclusive members' club, according to newly published financial statements.
The Grade II-listed former nightspot, located on London's prestigious Kensington High Street, revealed plans to operate as a members' club in February last year, with annual subscriptions reaching £2,000 per individual, as reported by .
This strategy enabled the business, established by Ovo Energy founder Stephen Fitzpatrick, to generate revenues of £4.3m during its initial trading period.
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However, this figure was overshadowed by the £25.8m deficit accumulated throughout 2024, compounding the £6.6m shortfall from the preceding year.
Subsequently, the enterprise has obtained a £15m facility from Ben Oldman, a "special situations" financier, who is imposing a staggering 17.5 per cent annual interest charge.
Within a declaration in its financial records, Kensington Roof Gardens stated it possessed "adequate resources to continue in operational existence for the foreseeable future."
The gardens, formerly under the ownership of billionaire entrepreneur Richard Branson's Virgin empire, commenced operations in 1938 following the completion of the Art Deco Derry and Toms department store beneath, a structure that currently accommodates the Mail and i newspapers alongside premium fitness facility Equinox. In the past, the gardens were a renowned celebrity hotspot as a nightclub, attracting high-profile visitors such as Kate Moss, Freddie Mercury, Madonna and Diana, Princess of Wales.
The roof gardens – among London's largest – were also known for their resident pink flamingos, which have since been relocated.
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Virgin, which had managed the site since 1981, shut it down in 2018 following a disagreement over lease extension terms. Fitzpatrick, believed to be worth more than £2.2bn according to the Sunday Times, stepped in to take over the site in 2023 and relaunched it last year.
Kensington Roof Gardens did not respond to a request for comment.