Rekom UK, which owns brands including Atik, Pryzm, Heidi’s Bier Bar and Proud Mary (pictured), said it had been an ‘extremely difficult’ year for the late-night sector as cost-of-living pressures continued to impact its core young adult and student customer base.
Chairman Peter Marks also cited the ‘cost-of-doing-business crisis’ as being a factor, noting that the group would have to find ‘an extra £2m’ to cover the rise in the National Living Wage announced by the Government last year.
“This has led to us having to accept that the group cannot continue in its current structure,” he said.
The group has filed a notice of intention to appoint administrators to a number of companies within its UK portfolio, which Marks added would give the business ‘breathing space and protection’ to work with lenders, landlords and other stakeholders on a potential restructuring plan.
“It is not all bad news,” Marks continued.
“We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.
“But we must go through this restructure to be able 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.”
The group added that the Nordic arm of the business is not affected.
Rekom UK’s announcement comes after fellow late-night operator Revolution Bars Group announced earlier this month that it would be shuttering eight of its ‘least profitable bars’ in order to reduce future losses.
The group cited the challenging macroeconomic trading environment impacting the sector, compounded by the planned increase in the national living wage in April, as being behind the closures.
