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The Night Time Industries Association (NTIA) has reported that as many as five nightclubs have been lost every week in the UK during the first quarter of 2024.
Figures from market researcher CGA Nielson have revealed that 67 clubs have been lost during the first three month of this year, equating to approximately five closures per week. Of these closures, nearly four on average were independent business, totalling 48 independent closures and 19 managed or tenanted establishments.
The NTIA added that there has been a 40% decrease in independent nightclubs over the last four years. Last year, the UK bid farewell to 81 nightclubs, marking a 10% decline. Of these closures, 59 were independent venues and 22 were managed or tenanted establishments.
Michael Kill, chief executive of the NTIA, said the decline was mostly due to a combination of factors, including insufficient support during the COVID-19 pandemic, mountain debt burdens and soaring operating costs.
Kill further called on policymakers to provide meaningful support to prevent further losses.
“The decimation of our nightclub industry is a national tragedy,” said Kill. “Without immediate intervention and meaningful support from policymakers, we risk irreparable damage to our cultural heritage and the fabric of our communities, the government must consider a VAT cut through fiscal intervention prior to the general election, businesses cannot wait.”
Earlier this month, it was reported that the embattled UK arm of Denmark’s Rekom Group would split from its owner and be controlled by its main lender ACG.
Now trading as Neos Hospitality, the company will continue to be one of the UK’s largest nightclub operators with 24 sites in total. Prior to the business experiencing troubles earlier this year, Rekom operated a portfolio of roughly 40 sites including nightclub brands such as Atik, Switch and Pryzm.
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