Thu 1st Feb 2024 - Exclusive: Rekom UK completes pre-pack administration, 17 sites closed, to focus on bar brands Exclusive – Rekom UK completes pre-pack administration, 17 sites closed, to focus on bar brands: Rekom UK, the nightclub and bar operator, has completed a pre-pack administration, resulting in the closure of 17 venues, as it looks to focus on the growth of its strong performing bar brands, Propel has learned. The company’s remaining estate comprises 23 venues, including ten bars and 13 nightclubs. The company said its focus will now be on its strongest performing brands, including Heidi’s Bier Bar and Proud Mary, which continue to operate and have “outperformed expectations since opening”. Propel revealed last month that Rekom UK was set for a restructuring after filing a notice of intention to appoint administrators to a number of its companies. Peter Marks, chairman of Rekom UK, said: “We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1,000 jobs. 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. 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. While 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.” The business continues to be owned by the Nordic arm of Rekom, which is backed by Danish private equity firm CataCap and operates circa 150 sites across Denmark, Finland and Norway. The restructuring, on which Grant Thornton advised, does not affect the Nordic arm of Rekom. Talking last month, Marks told Propel that a combination of the cost-of-living crisis and the cost of doing business had led the business to accept that the group could not “continue in its current structure”. As an example of how the cost of business had impacted Rekom UK, Marks said that while the government’s autumn 2023 statement saved it £120,000 on its £5m rates bill, it meant that the business had to find an extra £2m in wages. He said: “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.” The 17 sites that have closed with immediate effect are: Unit 7 in Basildon, PRYZM in Birmingham, Jumpin Jaks in Coventry, ATIK in Dartford, Unit 1 in Exeter, Bar & Beyond in Kings Lynn, PRYZM in Leeds, PRYZM in Nottingham, Liquid & Envy in Oldham, PRYZM in Plymouth, PRYZM in Portsmouth, ATIK in Romford, Level 17 in Swansea, PRYZM + Steinbeck & Shaw in Watford, ATIK in Windsor and ATIK in Wrexham. Rekom features in the Who’s Who of UK Food and Beverage, which is one of six databases exclusive to Premium Club members. The latest edition includes 838 companies and more than 227,000 words of content. There are a record 142 updated entries and 57 new companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.