THE UK’s biggest nightclub operator has announced 17 of its venues will close with immediate effect after plunging into administration.
Rekom UK, which owns brands including Atik and Pryzm, appointed administrators last week to carry out a review of its business.
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Today, it announced 17 of its venues will close while the remaining 23 “strongest performing” ones will remain open for now.
The nightclub operator said it had “made every effort” to redeploy affected staff to other parts of the business.
It added 1,000 jobs had been saved but that “some redundancies” would be possible.
Bosses moved to confirm the restructuing of Rekom does not affect its Nordic operations.
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Peter Marks, Rekom UK’s chairman, continued: “We have informed all colleagues within the organisation of the unfortunate developments that have taken place over the last 18 days.
“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 full list of 17 venues which are closing with immediate effect is:
- Basildon Unit 7
- Birmingham PRYZM
- Coventry Jumpin Jaks
- Dartford ATIK
- Exeter Unit 1
- Kings Lynn Bar & Beyond
- Leeds PRYZM
- Nottingham PRYZM
- Oldham Liquid & Envy
- Plymouth PRYZM
- Portsmouth PRYZM
- Romford ATIK
- Swansea Level 17
- Watford PRYZM
- Watford Steinbeck & Shaw
- Windsor ATIK
- Wrexham ATIK
Meanwhile, 11 sites will be sold with the remaining 12 not affected and trading as usual.
This is the full list of venues staying open and operating as usual:
- Chelmsford Bar & Beyond
- Exeter The Terrace
- Hull ATIK
- Norwich ATIK
- Norwich Bar & Beyond
- Oxford ATIK
- York Kuda
- Heidi’s Bier Bar Birmingham
- Heidi’s Bier Bar Cardiff
- Cardiff Proud Mary
- Swansea Proud Mary
What does going into administration mean?
When a company enters administration, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
Once the administrator has taken over, a moratorium is placed around the company and stops all legal actions.
After the administrator takes over, there isn’t much that can be done to reverse the process.
The administrator will write to your creditors and Companies House to say they’ve been appointed.
They will try to stop the company being liquidated but if they can’t, the administrator will pay as much of a company’s debts as possible from the assets.
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The administrator has eight weeks to write a statement explaining what they plan to do.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
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