ATIK nightclub operator to call in administrators amid “extremely challenging” time for the sector

The operator of ATIK and Pryzm nightclubs has filed a ‘Notice of Intention (NoI) to appoint administrators as it struggles to manage an “extremely challenging” time for the late-night sector.

REKOM UK said the move gives the company 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.

The night-time economy has been hit with rising energy bills, an increase in the cost of goods and a drop in demand in the young adult/student market due to the cost-of-living crisis.

REKOM UK, the largest nightclub operator in the UK, owns the ATIK brand – which has a venue on Brook Street in Wrexham City Centre.

A spokesperson for REKOM UK offered assurances today that it is business as usual for the Wrexham nightclub and others across the UK, which remain open.

Commenting on the announcement, REKOM UK chairman, Peter Marks said: “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.