Nightclubs to close with loss of hundreds of jobs

Two nightclubs in the South West are to close in the South West following the collapse of parent company Rekom UK.

In total 17 venues are being closed across the UK with the loss of hundreds of jobs.

Rekom UK, which owns a number of brands including Atik and Pryzm, said the sector had been hit with rising costs and called in administrators earlier this month.

The closure include six Pryzm nightclubs and four Atik clubs with the loss of 471 jobs.

The Pryzm nightclub in Plymouth and Unit 1 in Exeter are among the closures.

Peter Marks, Chairman of Rekom UK, said: “We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1,000 jobs.

“Regrettably, however, the reduced estate meant it was inevitable that we would have to make some redundancies. We have informed all colleagues within the organisation of the unfortunate developments that have taken place over the last 18 days

“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.”

A spokesperson for administrator Grant Thornton said that the company had been able to save 11 sites within the group.

A further 12 sites were unaffected by the administration.

The 11 sites, including the company’s head office, were sold to another entity within the Rekom Group.

Grant Thornton said this sale had saved around 500 jobs.

Jon Roden, restructuring partner for Grant Thornton UK LLP, said: “It is with regret that despite an extensive marketing and sale process prior to the administration and the best efforts of the directors and the company’s advisors, no interested parties have been identified for a number of sites.

“Accordingly, the administrators have had to close 17 sites because the commercial prospects of the affected businesses render them unviable to continue to operate, resulting in approximately 471 redundancies.

“The Grant Thornton team will work with the employees affected to support them through this process. We are pleased to report that we have been able to sell 11 sites immediately on appointment to Rekom that has preserved approximately 500 jobs, as well as further jobs secured through the solvent sale of two trading companies.”

Nightclubs which are closing

  • 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