UK's largest nightclub operator calls in administrators

The UK's largest nightclub operator is planning to call in administrators after struggling with a rise in costs.

Rekom UK, which runs 46 sites including the Pryzm and Atik brands, said the restructuring could see some of its venues close for good.

The company said the last 12 months had been "extremely difficult" for the late-night sector with rising costs impacting its younger customers and making it more challenging to trade.

Peter Marks, chairman of Rekom UK, said: "[While] the government's Autumn 2023 Statement saved us £120,000 on our £5m rates bill, it meant that we had to find an extra £2m in wages. Not only that, the cost of goods and energy have also seen inflation-busting rises. This has led to us having to accept that the group cannot continue in its current structure."

Rekom UK has filed a notion of intention to appoint administrators to several companies in the UK business.

It said this would give it "breathing space" to work with its lenders, landlords and stakeholders to find a solution going forwards.

Marks added: "It is not all bad news. We still have a core of successful club and bar businesses and our Nordic brands, Heidi's Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.

"But we must go through this restructuring to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs."

Rekom UK was formerly known as Deltic Group before it was bought out of administration by Scandinavian firm Rekom in December 2020.

This announcement does not affect the Nordic arm of Rekom, which operates almost 150 sites.

Earlier this month, Revolution Bars Group said it had shut eight sites across England after blaming the cost of living crisis for hitting the spending power of its younger customers.