Tue, 16 Jan 2024 | ADMINISTRATION
Rekom UK, the UK’s largest nightclub operator, has said it is planning to appoint administrators as it struggles with higher bills and reduced trading. The company, owned by Danish group Rekom, operates around 35 nightclubs in the UK.
The company owns the well-known nightclub brands Atik and Pryzm, as well as operating 12 late night bars. The business was formerly Deltic Group, which was acquired out of administration by Rekom in 2020 as the nightclub industry was decimated by the COVID-19 pandemic.
Rekom said that 2023 had again been a challenging year for the industry, with energy bills rising and the largely student-centered customer base of its larger nightclubs spending less amid the cost-of-living crisis, which it said has particularly impacted its midweek trading. Earlier this year, the company shut down its Pryzm venue in Watford, Hertfordshire, with owners saying there was “no choice” but to close the location.
The company is also facing the prospect of a further increase in costs, following a rise in the minimum wage announced in the government’s autumn budget. According to Rekom, this would lead to it needing to pay an additional £2 million in wages.
In a statement, Rekom said that a notice of intention to appoint administrators had been filed this week "for a number of companies within the group". The group’s operations in Denmark, Norway and Finland will not be affected.
In a statement, Rekom UK Chairman Peter Marks said that filing the notice would give the company “breathing space and protection” while it worked on a potential restructuring strategy with lenders, landlords and other stakeholder. Marks said that this process could result in a number of nightclubs shutting for good.
Marks continued that the pressures facing the company had "led to us having to accept that the group cannot continue in its current structure".
He continued: "We must go through this restructure to be able to come out stronger for the future," he said. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs."
Read more about the pressures impacting UK sectors such as hospitality
Unique opportunity to acquire two well-established hotels with a long trading history and diverse income streams.
FREEHOLD
Refurbished coaching inn presented in immaculate condition. Offering a bar, dining areas, 15+ ensuite letting rooms, dedicated parking and courtyard garden.
FREEHOLD
Opportunity to own a thriving hotel, bar, and restaurant in a popular tourist town with recent renovations.
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.