Wed, 15 May 2013 | ADMINISTRATION
The owner of the Chicago’s Bars chain, Atmosphere Bars and Clubs, has entered administration after being adversely affected by poor performance during the recession.
Based in Milton Keynes, Atmosphere operates 19 Chicago’s bars, three Modello bars and two nightclubs, situated in Luton and Bedford.
The business, which has 75 full time and 418 part time staff, is to continue trading while the administrators – Daniel Butters and Adrian Berry at Deloitte - seek to place it in new ownership.
Atmosphere has been finding trading tough in the recessionary years and has been operating at a loss for a significant length of time.
It reported a pre-tax loss of £4.1 million in the year ending 26 February 2012, with losses of £5.2 million for the year before, a situation which management put down to its rivals’ harshly discounted prices.
The business has also been affected by pub’s later closing times and changes to customer’s social habits, seeing people drinking less in the early part of the week, says Peter Martin, an industry expert at Peach Factory. He also puts this tendency towards sobriety or to staying at home down to unemployment amongst young people, with their reduced disposable income.
Commenting on the sale Mr Martin told the Financial Times, “Taking the whole business would be tricky, but they may be able to sell some sites.”
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