After leaving Watford, the UK’s biggest nightclub firm is planning to draft in administrators.
Pryzm recently closed its location in The Parade after a final New Years Eve event and now major restructuring could see several more venues shut down.
Rekom UK, which owns brands including Atik and Pryzm, said the news comes after an “extremely difficult” year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.
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It said tough conditions have particularly affected some of its “larger nightclubs”.
The firm, which runs roughly 35 clubs and 12 late-night bars across the country, said it had filed a notice of intention to appoint administrators for a number of companies within the group earlier on Monday.
Rekom has said recent trade was hit by the impact of the higher cost of living on young adults and students, however this was not the reason the Watford location had to close.
It had been unable to reach an agreement with the landlord on a new lease “that would ensure a long and sustainable future for Pryzm Watford”.
The company added that it has seen surges in its costs and would face further pressure from needing “to find an extra £2 million in wages” after the Government announced a rise in the minimum wage during the latest autumn statement.
Rekom UK chairman Peter Marks said the “notice of intention” gives the business “breathing space and protection” to work with lenders, landlords, and other stakeholders on a potential restructuring plan.
Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.
He added: “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.”
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