THE UK’s biggest nightclub operator has announced it will close more than a dozen venues with immediate effect after plunging into administration.
Rekom UK runs 50 bars, pubs and late night venues across the UK including Atik and Pryzm clubs.
But it was forced to call in administrators in January after facing “challenging” trading conditions.
Now it has named 17 locations that will close after it failed to find a buyer to take them on.
Another 11 sites have now been sold and will stay open under new owners.
A further dozen locations are set to stay open under Rekom’s ownership, said administrators Grant Thornton UK.
Among those set to shut are half a dozen Pryzm sites, four Atiks as well as a Jumpin Jaks and a Bar & Beyond.
The cost of living crisis has resulted in “increasing cash flow pressure and a decline in trading performance” the administrators said.
Peter Marks, Rekom UK’s chairman said: “This outcome follows an extremely difficult period for the late-night sector, thanks to the combination of the cost of living crisis hitting younger generations and students particularly hard, as well as the rising National Living Wage alongside increased business rates and costs of operating.”
He said Rekom UK was “confident” the restructure would help keep the rest of the business financially viable.
The 17 venues which are closing with immediate effect are:
- Basildon Unit 7
- Birmingham PRYZM
- Coventry Jumpin Jaks
- Dartford ATIK
- Exeter Unit 1
- Kings Lynn Bar & Beyond
- Leeds PRYZM
- Nottingham PRYZM
- Oldham Liquid & Envy
- Plymouth PRYZM
- Portsmouth PRYZM
- Romford ATIK
- Swansea Level 17
- Watford PRYZM
- Watford Steinbeck & Shaw
- Windsor ATIK
- Wrexham ATIK
Watford Pryzm has already been at risk of closing prior to the company calling in administrators, as its lease was due to end on January 5.
At the time, Rekom said it was “discussing options” for the site.
Another Pryzm in Plymouth held its last club night on New Year’s Eve.
Mr Marks said it had “made every effort” to redeploy affected staff to other parts of the business and that 1,000 Rekom jobs have been saved.
But he said redundancies are “inevitable” and administrators have confirmed 417 staff are affected.
There are 11 sites that have been sold and will remain open, with 500 jobs saved.
- Ashford Cameo
- Bournemouth Cameo
- Brighton PRYZM + Steinbeck & Shaw
- Bristol PRYZM + Steinbeck & Shaw
- Cambridge Vinyl
- Cardiff Circuit + Steinbeck & Shaw
- Eastbourne Cameo
- Gloucester ATIK
- Kingston PRYZM
- Milton Keynes Warehouse
- Tamworth ATIK
A further 12 locations will continue to be run by Rekom as they are unaffected by the administration.
- Cardiff District
- Chelmsford Bar & Beyond
- Exeter The Terrace
- Hull ATIK
- Norwich ATIK
- Norwich Bar & Beyond
- Oxford ATIK
- York Kuda
- Heidi’s Bier Bar Birmingham
- Heidi’s Bier Bar Cardiff
- Cardiff Proud Mary
- Swansea Proud Mary
Rekom also runs venues in Denmark, Norway and Finland which are not affected by the administration in the UK.
The company was previously named Deltic Group and collapsed into administration in late 2020.
It came following the heavy impact of the Covid-19 pandemic but was subsequently bought by Scandinavian nightclub operator Rekom.
However, by early 2023, chairman Peter Marks said he was “desperately concerned” about how the cost of living crisis was affecting students, who he said were socialising less due to price pressures.
The UK nightclub industry has been hit hard by the pandemic and the cost of living crisis, with many other venues closing in recent years.
High energy costs have crippled businesses and soaring inflation has seen punters cutting back on nights out.
Figures from Business Rescue Expert reveal the number of nightclubs that went insolvent in 2022 was 512, up from 280 the year before.
From January to June 2023, over 400 nightclubs were unable to pay their debts, just half way through the year.
Britain’s oldest casino closed for the last time after 195 years in business.
And a popular Glasgow nightclub announced its shock closure in August.
What does going into administration mean?
When a company enters administration, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
Once the administrator has taken over, a moratorium is placed around the company and stops all legal actions.
After the administrator takes over, there isn’t much that can be done to reverse the process.
The administrator will write to your creditors and Companies House to say they’ve been appointed.
They will try to stop the company being liquidated but if they can’t, the administrator will pay as much of a company’s debts as possible from the assets.
The administrator has eight weeks to write a statement explaining what they plan to do.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.