Nightclub operator Rekom has permanently closed 17 of its venues in the UK, The Business Desk has reported.
The company, which operates brands such as Atik and Pryzm, cited escalating costs as a contributing factor to its decision to call in administrators in early February 2024.
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The move has led to the loss of 471 jobs. The closures affect a range of locations, including six Pryzm nightclubs and four Atik clubs.
Notable among them are the Pryzm nightclub in Plymouth and Unit 1 in Exeter.
Rekom UK chairman Peter Marks was quoted by The Business Desk as saying: “We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1,000 jobs.
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“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.
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By GlobalData“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.”
Despite these closures, a spokesperson for Grant Thornton, the appointed administrator, has confirmed that 11 sites within the group have been saved, along with the company’s head office, through a sale to another entity within the Rekom Group.
This action has successfully preserved 500 jobs.
The remaining 12 sites within the Rekom portfolio are reportedly unaffected by the administration process.
The nightclubs facing closure are Basildon Unit 7, Birmingham Pryzm, Coventry Jumpin Jaks, Dartford Atik, Exeter Unit 1, Kings Lynn Bar & Beyond, Leeds Pryzm, Nottingham Pryzm, Oldham Liquid & Envy, Plymouth Pryzm, Portsmouth Pryzm, Romford Atik, Swansea Level 17, Watford Pryzm, Watford Steinbeck & Shaw, Windsor Atik and Wrexham Atik.
Rekom announced the appointment of administrators in January 2024. The Spirit Business quoted Peter Marks as saying at the time that their appointment will give the company “breathing space and protection to be able to work with our lenders, our landlords and other stakeholders to come up with the best solution for the UK group going forward.”
