Owners of UK’s Pryzm and Atik nightclubs call in administrators

nme.com:

Rekom UK, which owns the Pryzm and Atik brands, said any restructuring of the firm could result in the permanent closure of some of its popular nightclubs (via BBC News).The company cited challenges within the nighttime industry over the past year, blaming increased energy prices and students cutting back because of the current cost of living for its issues.Rekom UK runs approximately 35 clubs across the United Kingdom, including the Pryzm chain.

Its branch in Kingston upon Thames – which has a capacity of 2000 guests – often hosts intimate shows by big-name acts in partnership with Banquet Records.Recent performers include The Vaccines, The Kills, Rick Astley, The Pretenders, The Streets, Shania Twain, Royal Blood, Boygenius and Tears For Fears.Last year, Rekom UK said its venues were struggling because of poor midweek trading that was usually driven by students – explaining that “larger nightclubs” had been particularly affected.A notice of intention to appoint administrators “for a number of companies within the group” was filed yesterday (January 15).Peter Marks, chairman of Rekom UK, said the notice gave the company “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.The statement added that costs had increased, and predicted further difficulties in the future after a rise in the minimum wage during the government’s latest autumn statement.Rekom UK said it would need “to find an extra £2m in wages” as a result.Marks explained that this “led to us having to accept that the group cannot continue in its current structure”.He continued: “We must go through this restructure to be able to come out stronger for the future.“For any venues that may not.