Nightclub and bar giant sold in pre-pack for £19.5m, new documents reveal
Some 464 jobs were lost when 17 venues in the stricken Rekom UK chain were closed last month, according to document seen by TheBusinessDesk.com.
Rekom UK was sold company was sold in a pre-pack for around £19.5m – a figure which included some £19m of debt to secured creditor Axiom.
Figures show that Rekom UK owed around £40m to trade creditors when administrators were called in.
The venues now closed included Birmingham’s Pryzm nightclub which saw 70 jobs lost. Rekom UK’s remaining portfolio includes 23 venues, including ten bars and 13 nightclubs. The firm says it will concentrate on its stronger performing brands, such as Heidi’s Bier Bar and Proud Mary.
Documents from administrators show that Rekom UK’s bigger, more traditional nightclub venues had fared well when Covid restrictions were lifted in 2021, but began struggling again as the cost of living crisis hit its core 18-25 customer base.
Rekom UK, which operated nearly 40 clubs and late night bars across the UK, called in administrators in January – just three years after a major restructuring.
Peter Marks, chairman, said at the time: “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.
