Nightclub group Deltic warns of collapse without sale

By James McAllister

- Last updated on GMT

Nightclub group Deltic warns of collapse without sale Coronavirus restrictions impact

Related tags: Nightclub, lockdown, Coronavirus

Britain's biggest nightclub operator Deltic has warned landlords that the company faces collapse unless a sale is agreed imminently.

Sky News​ ​reports that it has seen a letter sent by Deltic Group CEO Peter Marks to property-owners seeking a rent-free period potentially lasting several months.

More than 1,000 jobs could be lost if the business, which owns the Pryzm and Bar & Beyond brands, collapses.

Marks told landlords that the rent-free agreement was essential because 'no interested party is prepared to proceed and accrue a rental liability without the knowledge that long term occupation of the property can be secured'.

He warned that without a successful sale, the business would have 'no option' but to be closed.

“The management team of Deltic Group firmly believe that when they are allowed to open they will once again have a viable long term business,” he said.

“In the interim any investor will have to fund substantial holding costs to maintain the staff and meet statutory obligation until the clubs can be reopened.

“Whilst bidders are willing to invest without clarity on an opening date, they require the support o f the landlord group through the closure period.”

Deltic, which operates 52 venues across the UK, has faced the enforced closure of its sites since the beginning of the first national lockdown in March.

Following an eight-month period of enforced closure, Deltic’s owners – which include its management team and a number of individual shareholders – entered the company into an emergency sale process in October.

There remains no detail on when nightclubs across the country will get the greenlight to reopen, despite the growing optimism about the availability of a Coronavirus vaccine in the coming months.

Earlier this week, the Night Time Industries Association (NTIA), which represents 1,200 independent bars, clubs and live music venues across the UK, said it feared nightclubs will become 'extinct' in UK culture​ as businesses continue to face no roadmap for reopening and growing financial pressures.

It claimed business owners within the night time economy are 'frustrated and angry' at being forced to remain closed despite working within the Government guidance and 'many' are now considering taking legal action.

Related topics: Business

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