A popular nightclub in Dartford is one of 17 to close after the UK’s biggest nightclub firm appoints administrators.
ATIK, located in Essex Road in Dartford, is one of the 17 sites that owner Rekom UK announced would close yesterday (February 1).
Rekom UK appointed Jon Roden, Rob Parker, and Helen Dale of Grant Thornton UK LLP as joint administrators to the seven companies in the UK owned by the Rekom Group.
This comes after Rekom UK, one of the UK’s largest nightclub firms, announced a planned draft of administrators as part of a major restructuring.
Rekom UK, which owns brands including ATIK and PRYZM, said it 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.
It said tough conditions have particularly affected some of its “larger nightclubs”.
The site was one of 35 clubs owned by the company, and is one of 2 sites to close in London and Kent, the other being Romford ATIK.
Rekom UK has confirmed that staff affected by the closures have already been informed and that redundancy support was being offered to those impacted by job losses.
It has also been confirmed that the sale of 11 sites were secured across the UK to join the 12 sites unaffected by the administration.
In a statement Rekom UK confirmed that it had made “every effort” to redeploy staff across the business, saving 1000 jobs.
Peter Marks, Chairman of Rekom UK commented: “We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1000 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.”
Confirming the appointments, Jon Roden, Restructuring Partner for Grant Thornton UK LLP, commented: “It is with regret that despite an extensive marketing and sale process prior to the administration and the best efforts of the directors and the Company’s advisors, no interested parties have been identified for a number of sites. Accordingly, the administrators have had to close 17 sites because the commercial prospects of the affected businesses render them unviable to continue to operate resulting in approximately 471 redundancies.
“The Grant Thornton team will work with the employees affected to support them through this process. We are pleased to report that we have been able to sell 11 sites immediately on appointment to Rekom that has preserved approximately 500 jobs, as well as further jobs secured through the solvent sale of two trading companies.”
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