The UK’s biggest chain of nightclubs has said 17 venues are to close down.
Rekom UK, which owns brands including Atik and Pryzm, said it had been hit with rising costs and was forced to call in administrators.
In total, 17 nightclubs are to be closed down with some closing their doors straight away. These include six Pryzm nightclubs and four Atik venues, resulting in the loss of 471 jobs.
Administrator Grant Thornton is overseeing the closures. Peter Marks, Chairman of Rekom UK, said: “We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1,000 jobs.
“Regrettably, however, the reduced estate meant it was inevitable that we would have to make some redundancies. We have informed all colleagues within the organisation of the unfortunate developments that have taken place over the last 18 days
“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.” A spokesperson for Grant Thornton said that the company had been able to save 11 sites within the group. A further 12 sites were unaffected by the administration.
Michael Kill CEO NTIA says: “The UK nightclub sector is in crisis, and facing significant challenges with the recent news of Rekom, the country’s biggest nightclub operator, which has gone into administration, closing 17 venues immediately across the country. This adds to the already immense issues the industry has been grappling with due to the ongoing inflationary pressures.”
“Nightclubs have long been vital social and cultural hubs in the UK, but they have suffered from prolonged closures, excessive operating costs and ongoing uncertainty. The administration and loss of venues by Rekom is a clear indication of the broader struggles faced by the sector.”
“The nightclub industry supports numerous jobs and local businesses and contributes to the economic and cultural vitality of our communities. Urgent action is required from government and industry stakeholders to provide tailored support measures and financial assistance to safeguard the sector’s survival.”
