Jobs lost as doors shut at Birmingham nightclub

More than 70 jobs have been lost at Birmingham’s Pryzm nightclub after its stricken owner decided to close the venue.

Earlier this week, TheBusinessDesk.com reported that Pryzm could be on the verge of closing. Now, the chairman of its owner, Rekom UK, has confirmed the news and 471 job losses across 17 sites including Jumpin Jaks in Coventry.

Rekom’s portfolio has been reduced from 35 clubs and 12 late-night bars down to 23 sites after seeing the cost-of-living crisis impact young people as well as a rise in the national minimum wage and increase in operating costs. 

Administrators were appointed at Grant Thornton who were unable to find buyers for all sites, but eleven bars and clubs have been sold to another entity in the business, saving up to 500 jobs.

Twelve sites, employing 500 staff are unaffected by the administration process.

Peter Marks, Chairman of Rekom UK said: “Following a review of our business, we were unable to reach an agreement with our landlord and have been forced to hand back the lease of Pryzm. Sadly, this means the club has closed and our team has been made redundant.”

Marks added: “While we understand the impact this will have on the local late-night economy, it’s important to recognise that this decision follows an extremely difficult period for the sector, due to the combination of the cost-of-living crisis hitting younger generations and students particularly hard, as well as the rising costs including the national minimum wage which particularly affects Hospitality, alongside increased business rates and many other costs of operating.”

Rekom UK had traded as Deltic Group before going into administration in 2020 as a result of the pandemic. It was bought by Scandinavian club operator Rekom Group A/S, making it Europe’s largest club operator. The Scandinavian part of the business is unaffected.