Rekom shuts 17 sites
The company, which is the UK’s largest nightclub operator, announced it would be caling in administrators and restructuring the business last month after a “difficult” year.
Rekom will see its c.50-strong estate reduced to 23 sites comprising 10 bars and 13 nightclubs.
A total of 17 sites including six Pryzm and four Atik nightclubs after the group failed to find a buyer to take them on.
Another 11 have been sold and will stay open under new owners.
Rekom chairman Peter Marks said the group had made every effort to redeploy affected staff to other parts of the business and that 1,000 jobs have been saved.
Difficult period
Restaurant reported that he said: “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.
“While 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.”
Sector in crisis
Commenting on the closures, the Night Time Industries Association (NTIA) chief executive Michael Kill said the UK nightlife sector is in “crisis”, facing significant challenges.
He said: “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.”
