Nightclub owner on the verge of administration

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Deltic, the nightclub owner which has venues across the Midlands, has filed a notice to appoint administrators.

The company, which owns the Pryzm nightclubs in Nottingham and Birmingham, Atik in Tamworth, Fiction in Hanley, Unique at JJ’s in Coventry and Chicago’s in Hanley, has been hit hard by the pandemic lockdowns and tiering restrictions in place across the UK since March.

Sky News reports that Scandinavian bar owner Rekon Group is leading the pack of potential buyers for Deltic, which it is thought will be sold in a pre-pack deal. Private equity fund Greybull Capital had previously been the frontrunner to snap up the stricken leisure operator.

It is thought that any deal will see some of Deltic’s 52 venues close permanently.

In October, TheBusinessDesk.com reported that Deltic had asked accountancy firm BDO to hunt down backers to help it avoid a potential collapse.

Deltic employs around 2,000 people.

A statement on Deltic’s website from CEO Peter Marks, says: “On March 20th Deltic closed its nightclub doors due to Covid-19. We had no problem with this of course, it was the right thing to do and we, along with others in hospitality, would have to wait a while for a green light to open.

“On 15th June in England, where the majority of our businesses are, non-essential shops were allowed to open their doors. Then pubs bars and restaurants could reopen on 4th July. In August most others such as bowling, gyms, barbers, beauticians and soft play could open. At this time we were expecting news for our own reopening date perhaps towards the end of August. But we heard nothing.

“Throughout the spring and summer we continued to invest in our people, improve systems, marketing and prepare for a Covid secure way back approved by scientists. But nothing. Still. The rest of hospitality has been able to open in some way, to get by, to give a much needed boost of socialising back to society, and give their employees hope things will return to normal one day and not worry about their futures.

“If we are not allowed to open yet, we need financial support from government to survive. No other industry has received as little support, is closed by law and still has no opening date. Even if you don’t like clubbing or your clubbing days are over we hope you see this as unfair as we do.

“Our customers want to come back. We ARE a viable business, if we could open. We had a great business, we will do again, but we need to get through this and ask government support us in the way they have others.”

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