Rekom administration closes 17 venues
The remaining estate of Rekom UK comprises 23 venues.
The UK's biggest nightclub operator has completed a pre-pack administration, resulting in the closure of 17 venues.
The remaining estate of Rekom UK comprises 23 venues, including 10 bars and 13 nightclubs.
Chairman Peter Marks has said that the stratgey going forward will be focusing on the company's strongest performing brands, including Heidi’s Bier Bar and Proud Mary.
"We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1,000 jobs," says Marks. "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.
"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."
Only the beginning
The Night Time Industries Association (NTIA) has said that the loss of these Rekom businesses is potentially just the beginning of the crisis ahead.
"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," says Michael Kill CEO NTIA . "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.
"Urgent action is required from government and industry stakeholders to provide tailored support measures and financial assistance to safeguard the sector's survival."