As part of a restructuring, the UK’s largest nightclub company plans to bring in administrators. This could lead to venues closing permanently.
Rekom UK owns Atik, Pryzm and other brands. The company said that the sector had experienced an “extremely challenging” year, due to the cost of living crisis, and the rise in energy and product prices.
The company stated that the tough economic conditions have affected its largest nightclubs in particular.
The company, which operates about 35 clubs in the UK and 12 late night bars, has filed a notice indicating its intention to appoint an administrator for several companies within the group.
Peter Marks said that the notice of intent gives the firm “breathing room and protection” so it can work with creditors, landlords, and other stakeholders to develop a possible restructuring plan.
Rekom UK has said that the recent trade was particularly affected by higher costs of living for young adults and student users.
The firm said that the company would have to “find an additional £2m” in wages after the government had announced a hike in the minimum wage which will come into effect in April.
Marks stated that this “led us to accept the fact that the group could not continue with its current structure”.
He said: “We have a core group of club and bar businesses that are successful, and our Nordic brands Heidi’s Bier Bar, in Birmingham and Cardiff, and Proud, Mary, in Cardiff and Swansea have exceeded all expectations.”
“But, we have to go through this restructuring to be stronger in the future.
We will try to find new owners for any venues that are not a part of Rekom UK and we will save jobs.
Rekom, a Scandinavian nightclub operator, bought the business from Deltic Group in late 2020.
The Nordic arm of Rekom, according to the bosses, is not affected.
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