The 海角视频鈥檚 biggest nightclub firm is planning to draft in administrators as part of a major restructuring which could see a number of venues shut their doors for good. Rekom 海角视频, which owns brands including Atik and Pryzm, said it comes after an 鈥渆xtremely difficult鈥 year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.
It said tough conditions have particularly affected some of its 鈥渓arger nightclubs鈥. The firm, which runs roughly 35 clubs and 12 late-night bars across the country, said it had filed a notice of intention to appoint administrators for a number of companies within the group earlier on Monday.
Peter Marks, chairman of the firm, said the 鈥渘otice of intention鈥 gives the business 鈥渂reathing space and protection鈥 to work with lenders, landlords and other stakeholders on a potential restructuring plan. Rekom said recent trade has been particularly impacted by the heavy toll of the higher cost of living on young adults and students who regularly use its venues.
It added that it has seen surges in its costs and would face further pressure from needing 鈥渢o find an extra 拢2million in wages鈥 after the Government announced a rise in the minimum wage during the latest autumn statement. Mr Marks said this 鈥渓ed to us having to accept that the group cannot continue in its current structure鈥.
He added: 鈥淲e still have a core of successful club and bar businesses and our Nordic brands, Heidi鈥檚 Bier Bar in Birmingham and and Proud Mary in Cardiff and have outperformed all expectations. But we must go through this restructure to be able to come out stronger for the future. For any venues that may not continue as part of Rekom 海角视频, we will do our best to find new owners and save jobs.鈥
The business had been run as Deltic Group before it tumbled into administration in late 2020 following the heavy impact of the pandemic and was bought by Scandinavian nightclub operator Rekom. Bosses said the Nordic arm of Rekom was not affected.
