Troubled nightclub operator Rekom splits from Scandinavian owner

Nightclub operator Rekom said it is ready for a “new chapter” after splitting from its Scandinavian owner.

The company has separated from Denmark’s Rekom Group, which bought the business out of administration in 2020.

Under the new structure, Rekom UK will be controlled by its main lender, ACG, and will be renamed and trade as Neos Hospitality.

Neos is one of the UK’s largest nightclub operators and operates 24 sites under brands including Bar & Beyond and Proud Mary.

Like many late-night groups, it has struggled with rising costs and a drop in trade since the pandemic.

In February, over 400 jobs were lost when the business closed 17 UK nightclubs, including sites under the Pryzm and Atik brands.

Day-to-day operations at its remaining nightclubs will be unaffected by the change in ownership.

Neos Hospitality will be led by Russell Quelch as chief executive officer. Chairman Peter Marks and the existing management team will continue in their current roles.

Quelch said: “We are excited to embark on this new chapter. The team has laid a solid foundation and, together with our new owner, we are committed to further developing and growing the business and achieving success across the UK.”