Nightclub operator Rekom UK has embarked on a new journey following its separation from its parent company, the Denmark-based Rekom Group.
The company, which was acquired by the Scandinavian parent in 2020, will now be controlled by its main lender, ACG – an independent investment company.
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The rebranded entity, Neos Hospitality, will continue to be led by CEO Russell Quelch, with chairman Peter Marks and the existing management team retaining their roles.
Neos Hospitality manages 24 sites across various brands, including Heidi’s Bier Bar, Proud Mary, and Bar & Beyond.
Despite the change in ownership, the business assures that its day-to-day operations will remain unaffected.
Russell Quelch said: “We are excited to embark on this new chapter. The team has laid a solid foundation and, together with our new owner, we are committed to further developing and growing the business and achieving success across the UK.”
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By GlobalDataThe late-night sector has faced challenges such as rising costs and decreased trade post-pandemic, which have impacted many similar businesses.
Earlier this year, in January, Rekom UK had to call in administrators as part of a restructuring programme.
When the announcement was made, Peter 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.”
Chairman Peter Marks explained that the ‘notice of intention’ provided the company with ‘breathing space and protection’ to negotiate a potential restructuring plan with lenders, landlords, and other stakeholders.
This restructuring had subsequently led to the closure of 17 UK nightclubs, including those under the Pryzm and Atik brands in February. It resulted in the loss of 471 jobs at locations such as six Pryzm nightclubs and four Atik clubs.
