02 February 2024 , 12:50
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The biggest nightclub firm in the UK has announced it will close 17 venues as part of a pre-pack administration.
Rekom UK, which owns brands including Atik and Pryzm, has been struggling with rising costs and had revealed plans to call in administrators earlier this month. In an update today, it was confirmed some sites will now close immediately, including six Pryzm nightclubs and four Atik venues, resulting in the loss of 471 jobs.
The company previously said it has been an “extremely difficult” year for the late-night sector due to the cost of living crisis and higher costs for energy. It added that it would face further pressure from needing “to find an extra £2 million in wages” after the Government announced a rise in the minimum wage. Grant Thornton UK LLP has been appointed as administrators.
Peter Marks, chairman of Rekom UK, said: "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.
"Whilst we still recognise there are continued challenges facing the late-night sector, we can now look to the future with optimism. We are confident that this restructure gives Rekom UK a strong core estate that will continue to have a relevant and engaging business proposition in line with consumers' changing social habits and behaviours."
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The business was previously known as Deltic Group before it collapsed into administration in late 2020 following the Covid-19 pandemic. It was latest bought by Scandinavian nightclub operator Rekom. The Nordic arm of Rekom is not affected by the closures today.
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.”
Which nightclubs are closing?
Basildon Unit 7
Birmingham PRYZM
Coventry Jumpin Jaks
Dartford ATIK
Exeter Unit 1
Kings Lynn Bar & Beyond
Leeds PRYZM
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Nottingham PRYZM
Oldham Liquid & Envy
Plymouth PRYZM
Portsmouth PRYZM
Romford ATIK
Swansea Level 17
Watford PRYZM
Watford Steinbeck & Shaw
Windsor ATIK
Wrexham ATIK