[ad_1]
Image source, Getty Images
Rekom-owned Pryzm in Watford closed down for good in January
The UK’s largest nightclub operator has said it plans to bring in administrators as it struggles with higher bills.
Rekom, which owns the Atik and Pryzm brands, said any restructure of the business could see some of its well-known nightclubs shut for good.
The firm said the last year had been a challenging time for the industry.
It blamed higher energy prices and students cutting back because of the cost of living for its problems.
Rekom, which operates around 35 clubs in the UK, admitted last year that its nightclubs were struggling because of poor midweek trading that was usually driven by students.
It said that tough conditions had particularly affected some of its “larger nightclubs”.
A notice of intention to appoint administrators “for a number of companies within the group” had been filed on Monday, it said.
In a statement, Peter Marks, chairman of the firm, said the notice gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.
‘Save jobs’
As well as cost-of-living pressures on its customers, the firm said that it had seen surges in its costs and expected more difficulty down the road following a rise in the minimum wage during the government’s latest autumn statement.
Rekom said this meant it needed to find an extra £2 million in wages.
Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.
“We must go through this restructure to be able to come out stronger for the future,” he said..
“For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”
It is not clear yet which venues might be affected. Pryzm in Watford, Hertfordshire, shut down in January, with its owners saying they had “no choice but to close”.
Despite the tough conditions, Rekom said its Nordic bars Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea had “outperformed all expectations”.
The business had been run as Deltic Group before it fell into administration in late 2020 following the heavy impact of the Covid-19 pandemic and was bought by Scandinavian nightclub operator Rekom.
Rekom also owns several bars and clubs in Denmark, Norway and Finland, which it has said won’t be affected.
[ad_2]
Source link