The UK’s largest nightclub operator is reportedly looking to bring in administrators, after struggling with higher bills and the effects of the cost-of-living crisis.
Copenhagen-headquartered Rekom owns the Atik, Switch and Pryzm brands, as part of its 35-strong portfolio in the UK. The group said that the last year had been difficult and it could result in some of its well-known nightclubs closing for good, according to an article from the BBC.
It was reported that a notice of intention to appoint administrators ‘for a number of companies within the group’ had been filed yesterday (Monday).
In a statement to PA Media, chair of the firm Peter Marks said that filing the notice gives the business “breathing space and protection” to work with lenders, landlords and stakeholders on a potential restructuring plan.
Rekom noted that the cost-of-living pressures on its customers, the increase in bills and the rise in the minimum wage has had a major effect on the club chain.
“We must go through this restructure to be able to come out stronger for the future,” added Marks. “For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”
It is not known which venues may be affected, but Pryzm in Watford recently closed down as the owners were unable to reach an agreement with the landlord on a new lease.
In a statement, Michael Kill, chief executive of the Night Time Industries Association (NTIA), called on the government to step in to help the ailing night time sector in the UK.
Kill said: “The Night Time Industry Association is deeply concerned about the potential placement of some businesses within the Rekom Group into administration, adding to the constant stream of closures our industry faces on a daily basis. The nightlife sector is in crisis, and we implore the Chancellor and Prime Minister to recognise the urgent need for support before it’s too late.
“The continued lack of acknowledgement from the government regarding the severity of the crisis at hand is disheartening. Nightlife businesses, which contribute significantly to the cultural and economic fabric of our communities, are struggling to survive. The time for action is now.”