Rekom UK, Britain’s largest nightclub operator, is close to appointing administrators as it struggles to reignite demand for clubbing post-pandemic.
The owners of brands like Atik and Pryzm said it was likely a host of site closures would occur as a result of it appointing administrators for several of its subsidiaries.
“This gives us breathing space and protection to be able to work with our lenders, our landlords and other stakeholders to come up with the best solution for the UK group going forward,” said Peter Marks, the company’s chairman.
Nightclubs have faced a difficult period since the UK came out of lockdown and last year was no different, with Rekom UK claiming it was an “extremely difficult” 12 months due to rising bills and weakened demand.
Last year, the group said it had been struggling due to a lack of interest from students, who historically helped lift mid-week trading.
Rekom UK, which owns 35 clubs and 12 bars across the country, said it had “no choice but to close” its Pryzm venue in Watford this month after failing to reach a new agreement on its lease.
Marks added: “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 restructure 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.”
It’s believed consumer habits have changed since the pandemic, with Brits now more interested in ‘light-night’ venues, which offer a twist on typical bars and clubs by adding in games or activities.
Examples of this include XP Factory, which owns Boom Battle Bar, a brand of bars which offers punters the chance to try activities like axe throwing and batting cages while they drink.