UK's biggest nightclub chain says 17 venues to close - full list including Atik and Pryzm

Brands including Atik and Pryzm are being closed after administrators were appointed amid financial difficulties

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13:00, 3 FEB 2024
Updated13:05, 3 FEB 2024

A total of 17 Pryzm and other brands of nightclubs are being shut down as the parent company ran into difficulties — A total of 17 Pryzm and other brands of nightclubs are being shut down after the parent company ran into difficulties (Image: Graham Young / BirminghamLive)

The UK’s biggest chain of nightclubs has said 17 venues are being closed down and issued a full list. Parent company Rekom UK, which owns brands including Atik and Pryzm, said it had been hit with rising costs and called in administrators earlier this month.

Now 17 nightclubs are to be closed down - with some shutting 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.

The 11 sites, including the company’s head office, were sold to another entity within the Rekom Group. Grant Thornton said this sale had preserved approximately 500 jobs.

The business was previously known as Deltic Group before it collapsed into administration in late 2020 following the Covid-19 pandemic. It was latest bought by Scandinavian nightclub operator Rekom. The Nordic arm of Rekom is not affected by the closures today.

Jon Roden, restructuring partner for Grant Thornton UK LLP, said: “It is with regret that despite an extensive marketing and sale process prior to the administration and the best efforts of the directors and the Company’s advisors, no interested parties have been identified for a number of sites.

“Accordingly, the administrators have had to close 17 sites because the commercial prospects of the affected businesses render them unviable to continue to operate, resulting in approximately 471 redundancies. The Grant Thornton team will work with the employees affected to support them through this process. We are pleased to report that we have been able to sell 11 sites immediately on appointment to Rekom that has preserved approximately 500 jobs, as well as further jobs secured through the solvent sale of two trading companies.”

The company added that it would work closely with the redundancy payments office to provide support for those affected, and said that staff hit by the announcement have been briefed. Grant Thornton said that Rekom Group’s other European operations were unaffected by the closures.