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THE UK’s biggest nightclub has revealed the exact date that it will close another location after closing 17 venues.
Rekom UK runs a dozen bars, pubs and late night venues across the UK including Atik and Pryzm clubs.
Rekom UK is to close another another venue following a string of closures[/caption]
But it was forced to call in administrators in January after facing “challenging” trading conditions.
As a result, it closed a number of venues in February, including those in Nottingham, Birmingham and Leeds.
Another 11 sites were sold and remain open under new owners.
The chain has now revealed that ATIK nightclub in Oxford will close at the end of June.
A spokesperson from ATIK Oxford said: “We are extremely disappointed that as it stands, ATIK Oxford will close at the end of June, with a plan to redevelop Cantay House into offices.”
Rekom UK said that the closure is nothing to do with the restructuring process that took place earlier this year.
It added that it is looking for alternative venues in the city for a nightclub.
Among those that closed earlier this year were half a dozen Pryzm sites, four Atiks as well as a Jumpin Jaks and a Bar & Beyond.
The cost of living crisis had resulted in “increasing cash flow pressure and a decline in trading performance” the administrators said.
Speaking at the time, Peter Marks, Rekom UK’s chairman said he was “confident” the restructure would help keep the rest of the business financially viable.
The 17 venues which closed in February are as follows:
- 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
- Wrexham ATIK
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Watford Pryzm has already been at risk of closing prior to the company calling in administrators, as its lease was due to end on January 5.
At the time, Rekom said it was “discussing options” for the site.
Another Pryzm in Plymouth held its last club night on New Year’s Eve.
There are 11 sites that were sold and remain open are:
- Ashford Cameo
- Bournemouth Cameo
- Brighton PRYZM + Steinbeck & Shaw
- Bristol PRYZM + Steinbeck & Shaw
- Cambridge Vinyl
- Cardiff Circuit + Steinbeck & Shaw
- Eastbourne Cameo
- Gloucester ATIK
- Kingston PRYZM
- Milton Keynes Warehouse
- Tamworth ATIK
A further 12 locations, including Oxford Atik, are still run by Rekom:
- Cardiff District
- Chelmsford Bar & Beyond
- Exeter The Terrace
- Hull ATIK
- Norwich ATIK
- Norwich Bar & Beyond
- Oxford ATIK
- York Kuda
- Heidi’s Bier Bar Birmingham
- Heidi’s Bier Bar Cardiff
- Cardiff Proud Mary
- Swansea Proud Mary
Rekom also runs venues in Denmark, Norway and Finland which are not affected by the administration in the UK.
The company was previously named Deltic Group and collapsed into administration in late 2020.
It came following the heavy impact of the Covid-19 pandemic but was subsequently bought by Scandinavian nightclub operator Rekom.
However, by early 2023, chairman Peter Marks said he was “desperately concerned” about how the cost of living crisis was affecting students, who he said were socialising less due to price pressures.
The UK nightclub industry has been hit hard by the pandemic and the cost of living crisis, with many other venues closing in recent years.
High energy costs have crippled businesses and soaring inflation has seen punters cutting back on nights out.
Figures from Business Rescue Expert reveal the number of nightclubs that went insolvent in 2022 was 512, up from 280 the year before.
From January to June 2023, over 400 nightclubs were unable to pay their debts, just half way through the year.
It comes after Revolution Bars revealed plans which could involve closing up to 12 bars after six have already shut.
What is happening in the hospitality industry?
Food and drink chains in general have been suffering in recent months as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores by next month.
Tasty, the owner of Wildwood, said it will shutter the sites as part of major restructuring plans.
The brand plans to close 20 loss-making restaurants after a “challenging” start to the year.
Britain’s biggest pub company, Stonegate, has raised fears about its survival as it races to plug its debts.
Stonegate owns 4,432 sites across the UK under the Slug & Lettuce, Be at One, Sports Bar & Grill brands and 350 traditional style pubs under its “Proper Pubs” banner.
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