Venue has shut alongside a sister site in the capital after “overly ambitious” rapid expansion

A karaoke bar has closed down after a business embarked on an "overly ambitious" expansion.

Karaoke Box, in Birmingham's popular night-time area Broad Street, and a sister site in London have shut as part of a buyout deal by members of the firm's management.

The group's two other London sites, in Soho and Mayfair, will remain open. The first Karaoke Box opened in London in 1997.

Financial services firm PKF Littlejohn, which worked with the team on the restructure, said: "Karaoke Box had grown into a popular destination but the rapid expansion of the business had proven to be overly ambitious and the company ran into financial difficulties.

"With [our] support, Karaoke Box was restructured with a sale to management of two venues in London and the closure of one London venue and the Birmingham destination."

Twelve jobs have been saved as part of the deal.

Karaoke Box at Regency Wharf in Birmingham has now closed as part of a restructure

placeholder image — Karaoke Box at Regency Wharf in Birmingham has now closed as part of a restructure

Paul Williams, partner and head of advisory with PKF Littlejohn, said: "This is a positive result for the team and customers at Karaoke Box.

"Not only can the business continue to trade and bring people together but we've also been able to help ensure that the vast majority of staff have kept their jobs.

"With the two bars continuing to operate in the capital, we expect Karaoke Box to be on a much more robust footing for the foreseeable future."

The administrators' legal advisors on the sale of Karaoke Box were Shoosmiths while Gordon Brothers provided further support.