470 jobs lost as UK's largest nightclub operator closes sites

The UK’s largest nightclub operator has closed 17 sites through pre-pack administration after struggling with a rise in costs.

Approximately 471 jobs have been lost in the restructure of Rekom UK, which is behind brands including Heidi’s Bier Bar and Proud Mary.

The closures include six Pryzm nightclubs and four Atik sites across the country, as well as Jumpin Jaks in Coventry and Level 17 in Swansea.

Administrators Grant Thornton said they had been unable to find a buyer for a number of venues despite an “extensive” marketing process.

Eleven bars and clubs, including Pryzm sites in Brighton and Bristol, have been sold to another entity in the business, saving 500 jobs.

The closures come amid a difficult time for the late-night sector, with operators struggling with rising costs and a drop in trade. Revolution Bars Group shut eight sites across England in January after blaming the cost-of-living crisis for hitting the spending power of its younger customers.

Rekom UK’s remaining estate includes 10 bars and 13 nightclubs.

Peter Marks, chairman of Rekom UK, said affected staff would be found new roles across the company where possible and around 1,000 jobs had been saved, but there would “regrettably” be some redundancies.

“This outcome follows an extremely difficult period for the late-night sector, thanks to the combination of the cost-of-living crisis hitting younger generations and students particularly hard, as well as the rising National Living Wage alongside increased business rates and costs of operating,” said Marks.

“Whilst we still recognise there are continued challenges facing the late-night sector, we can now look to the future with optimism.

“We are confident that this restructure gives Rekom UK a strong core estate that will continue to have a relevant and engaging business proposition in line with consumers’ changing social habits and behaviours.”

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.

The full list of closures is as follows:

Unit 7 - Basildon Unit 7

Pryzm - Birmingham

Jumpin Jaks - Coventry

Atik - Dartford

Unit 1 - Exeter

Bar & Beyond - Kings Lynn

Pryzm - Leeds

Pryzm - Nottingham

Liquid & Envy - Oldham

Pryzm - Plymouth

Pryzm - Portsmouth

Atik - Romford

Level 17 - Swansea

Pryzm - Watford

Steinbeck & Shaw - Watford

Atik - Windsor

Atik - Wrexham

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