Nightclub owner to call in administrators amid spiralling costs
The owner of a chain of nightclubs across the UK has filed a notice of intention to call in the administrators.
Rekom UK, which owns venues such as Atik and Pryzm, said the move comes after a difficult year for the late night sector.
The company said it had been badly affected by the cost-of-living crisis and surges in the costs of energy and goods.
It added that the tough conditions have particularly affected some of its “larger nightclubs”.
Rekom operates roughly 35 clubs and 12 late-night bars across the country, said it had filed a notice of intention to appoint administrators for a number of companies within the group.
Peter Marks, chairman of the firm, said the “notice of intention” gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.
Rekom said recent trade has been particularly affected by the impact of the higher cost of living on young adults and students who use its venues.
It added that it has seen surges in its costs and would face further pressure from needing to find an extra £2m in wages” after the Government announced a rise in the minimum wage during the latest autumn statement.
Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.
He added: “We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations. But we must go through this restructure to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”
