Shares in the company, owner of seven nightclub brands including Liquid and Oceana, were suspended yesterday as the directors announced they had 'no option' but to place the company into administration.
Luminar, which employs around 3,000 people across 77 sites in the UK, had originally been granted a waiver of certain covenants in its three year banking facility with Lloyds TSB and Barclays on 11 May during which time it offered to investigate 'longer term restructuring options'.
In a statement released yesterday the company said: "The Banking Group has today informed Luminar that it will not grant an extension to the waiver when it expires. Absent such waiver, the company is unable to meet certain of its repayment obligations to the Banking Group which fall due on 27 October. As a result it will also be unable to issue its half-yearly financial report covering the first six months of the financial year on a going concern basis on that date as required by the Disclosure and Transparency Rules."
Luminar had made efforts to restructure its debt and save money by selling and leasing back or selling certain sites. It also launched a new concept Woo Woo bars in five clubs to refresh its offer.
However, sales fell more than expected in the 18 weeks to 2 July as the nightclub industry found it hard to attract young customers affected by rising numbers of unemployment.
Administrators Ernst & Young have been appointed to take over the running of the business.