Britain’s biggest nightclub operator, Rekom UK, is reportedly planning to call in administrators. They operate 46 venues, including nightclubs PRYZM and Atik.
According to The Caterer, an increase in costs is behind the decision. The company said the past year has been “extremely difficult” for the nightlife sector.
Peter Marks, chairman of Rekom UK, said: “(Whilst the government’s statement in autumn 2023 saved us £120,000 on our £5m levy bill, it meant we had to find an extra £2m in wages. Not only that, the cost of commodities and energy have also seen inflation-busting gains.
“This has led us to accept that the group cannot continue in its current structure.” Rekom UK has submitted a proposal of intention to appoint administrators to several companies.
It said this would provide “breathing space” to work with its lenders, landlords and stakeholders. “It’s not all bad news,” the chairman continued. “We still have a core of successful club and bar operations and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have exceeded all expectations.
“But we need to go through this restructuring in order 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.”
There is currently one PRYZM still open in Kingston, making it the last branch within the M25. Watford PRYZM closed its doors on New Year’s Eve and are going out in style with a closing party. There are two Atik clubs in London; one is in Dartford and the other is in Romford.
