The UK’s largest nightclub operator, Deltic Group, is scrambling to secure a rescue deal as it teeters on the brink of administration.
The company, which runs the Oceana and Pryzm chains and employs 1,500 people across 52 clubs, has filed a notice of intention to appoint administrators, in a legal measure which provides legal protection for ten working days.
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It is understood that the company hopes to secure a pre-pack administration rescue deal in that time.
Scandinavian hospitality giant Rekom, which runs more than 100 nightclubs and bars in Norway, Demark, and Finland, is the frontrunner to save Deltic.
Private equity firm Greybull Capital, which has previously backed high-profile failures such as British Steel, are also in discussions over a deal.
The hospitality industry has been flailing under the pressure of Covid closures that swept the country in March.
This week it was revealed that just one in five pubs could be open this Christmas due to Covid restrictions.
The curbs in the run-up to the festive season may mean nearly 10,000 will shut for good, with as many as 290,000 jobs lost.
It’s unclear when night clubs will be allowed to open at full capacity in the UK, due to compulsory social distancing measures.
Deltic has already cut around 1,000 jobs this year and repurposed parts of its clubs as bars in a bid to mitigate the impact of the virus.
Last month, its chief executive Peter Marks warned landlords that the company faced collapse unless a sale was agreed imminently.
Mr Marks, who founded the group in 2011 by purchasing the collapsed Luminar nightclub business with the support of several private investors, has been a vocal critic of Government policy on nightclubs which have been unable to fully operate since March.
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Chancellor Rishi Sunak has previously moved to try to help the nightclub and hospitality industry, with cash grants of up to £3,000 to help struggling businesses.
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Britain’s top scientist admitted there was “no hard evidence” the 10pm pubs curfew worked.
Just one in five pubs could be open this Christmas due to Covid restrictions
This post first appeared on thesun.co.uk
