Brighton Pryzm could close as company set to hire administrators Brighton News

Rekom UK, which owns the brand Pryzm, said the move 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.

The firm also said tough conditions had affected some of its “larger nightclubs”.

The company, which runs the Pryzm nightclub on West Street, said it had filed a notice of intention to appoint administrators for a number of companies within the group.

Peter Marks, chairman of the firm, 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.

Rekom said recent trade had been particularly impacted by the heavy toll of the higher cost of living on young adults and students who regularly use its venues.

It added that it has seen surges in 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.

Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.

He said: “We still have a core of successful club and bar businesses, 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.”

The company runs roughly 35 clubs and 12 late-night bars across the country and had been run as Deltic Group before it tumbled into administration in late 2020 following the impact of the pandemic.

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This notice was published: 2024-01-19 12:42:00

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