Rekom UK shutters 17 sites as it completes pre-pack administration

By James McAllister

- Last updated on GMT

Rekom UK shutters 17 sites as it completes pre-pack administration

Related tags Rekom Heidi’s Casual dining Administration Multi-site Night time economy Proud Mary Bar group Nightclub Pub & bar

Rekom UK has closed 17 sites across its estate following the completion of a pre-pack administration.

The group, which is the UK’s largest nightclub operator, revealed last month​ that it would be calling in administrators and restructuring the business following an ‘extremely difficult’ year.

As a result, Rekom will see its c.50-strong estate reduced to 23 sites comprising 10 bars and 13 nightclubs.

A total of 17 sites including six Pryzm and four Atik nightclubs will close after the group failed to find a buyer to take them on.

Another 11 have been sold and will stay open under new owners.

In a statement, Rekom chairman Peter Marks said the group had ‘made every effort’ to redeploy affected staff to other parts of the business and that 1,000 jobs have been saved.

However, administrators Grant Thornton UK have confirmed that approximately 471 jobs across the business have been lost as a result of the restructuring.

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.”

Rekom’s remaining estate focuses on the company’s strongest performing brands including Heidi’s Bier Bar and Proud Mary (pictured), which have ‘outperformed expectations’ since opening.

Marks said: “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.

“Whilst 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.”

Rekom UK was previously known as Deltic Group before it collapsed into administration in late 2020 following the Covid-19 pandemic. It was later bought by Scandinavian nightclub operator Rekom​.

It was previously confirmed that the Nordic arm of the business was not affected by the restructuring.

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