Birmingham nightclub Pryzm ‘at risk’ as UK’s biggest operator calls in administrators

The UK’s biggest nightclub firm has announced its intention to call in administrators as part of a restructuring which could see venues across the UK close for good.

Rekom UK says it’s too early to say which venues will be impacted. The company owns Pryzm on Broad Street in Birmingham. In the meantime it is business as usual - and all venues are continuing to trade as normal.

Rekom UK said it has been an “extremely difficult” year for the late-night sector with the cost of living crisis which has affected the young adult and student market.

The group has also said that it is being hit by a cost-of-doing business crisis and highlighted the government’s Autumn 2023 statement which it said resulted in them having to find an extra £2m in wages, while saving the company just £120,000 on its £5m rates bill. Rekom UK venues are also being hit by the rising cost of goods and energy prices.

What about Heidi’s Bar on Broad Street?

The company also owns Heidi’s Bar on Broad Street - but this is not affected by any restructure proposals. It falls into the Nordic arm of Rekom UK which has outperformed all expectations and includes Heidi’s Bar in Cardiff and Proud Mary in Cardiff. The company has pledged to do its best to find new owners and save for any venues that it finds it can no longer run as part of the plans.

Rekom UK statement about administrators in full

The company told BirminghamWorld: “REKOM UK has filed a ‘Notice of Intention (NoI) to appoint administrators to a number of companies in the UK group.  This gives REKOM UK the breathing space and protection to be able to work with its lenders, landlords, and other stakeholders to come up with the best solution for the UK group going forward.”

Commenting on the announcement, REKOM UK chairman, Peter Marks explained: “The last 12 months have been extremely difficult for the late-night sector, particularly affecting some of the larger nightclubs. 

“This has been the result of the combination of the cost-of-living crisis that has so badly affected the young adult/student market, together with the cost-of-doing-business crisis.

"For example, while the government’s Autumn 2023 Statement saved us £120k on our £5M rates bill, it meant that we had to find an extra £2million in wages. Not only that, the cost of goods and energy have also seen inflation-busting rises. This has led to us having to accept that the group cannot continue in its current structure.

“It is not all bad news. 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 restructuring 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. This announcement does not affect the Nordic arm of REKOM.”