Rekom UK, which owns nightclub brands Pryzm and Atik, is reportedly set to undergo a restructure as part of the move — casting doubt on the future of the 43 bars and nightclubs it currently owns.
The firm said the decision had come amid a "challenging time for the industry" in 2023 - referencing factors such as a drop in student clubgoers and soaring energy bills as sources for its financial woes.
Last year, the huge European company admitted that pressure from the Cost Of Living Crisis had resulted in a loss of mid-week spending - as students were forced to cut back on costs.
Working on a restructuring plan with lenders, landlords, and other stakeholders, Chairman Peter Marks hopes the notice of intention gives the business the “breathing space and protection” to move forward.
Following the announcement of a new minimum wage, to take effect in April 2024, Rekom UK added that “an extra £2m in wages” would be required to cover the new costs.
Though it is not clear which of Rekom UK’s branches are to be impacted, the BBC reported that some of their “largest clubs," were among those most severely affected.
This month, the owner of PRYZM in Watford, Hertfordshire, announced they had “no choice but to close.”
Since the pandemic, the nightlife industry has faced several challenges, with bars and clubs across the UK facing closure. After the strain caused by two years of country-wide lockdowns, venues now face rising costs and changes in crowd habits.
On the topic of the crisis in the nightlife industry, Rik-Ines Andrin, director, and co-founder of independent Leeds venue Old Red Bus Station, told Mixmag “It’s far scarier now than it was during the pandemic.”
Rekom said that not all branches of the company had been impacted, with several of their Scandinavian venues remaining unaffected by the difficulties.
For a list of help and resources facing the Cost Of Living Crisis, click here.
Belle Richardson is Mixmag's Digital Intern, follow her on Twitter