Deltic sold to Rekom for £10m

By James McAllister

- Last updated on GMT

Deltic sold to Rekom for £10m

Related tags: Deltic, Nightclub, Administration

UK nightlife operator Deltic was bought out of administration by Scandinavian nightclub group Rekom last month for £10m, accounts from administrator BDO reveal.

The deal, which saw the Nordic company take over 42 of Deltic's bars and clubs in the UK​, secured the future of around 1,300 jobs. 

Deltic CEO Peter Marks remained in his role for the new UK organisation, which is to merge with the wider Rekom Group.

Rekom, which has been backed by the Danish private equity firm CATACAP since 2018, is the largest nightlife group in the Nordics and operates more than 130 bars and clubs in Denmark, Finland and Norway.

It emerged as the preferred purchaser of Deltic in early December, outbidding private equity firm Greybull Capital whose own £10m offer was for just 22 of Deltic's then 52 sites.

Subject to enforced closure for over six months and unable to access the vast majority of government support schemes, the accounts show that Deltic had accrued rent arrears of approximately £9.4m at the time of sale.

It also owed £7.7m to HMRC.

A Company Voluntary Arrangement (CVA) had been considered, but was not a viable option.

Commenting on the completion of the deal last month, Marks said: “When Rekom emerged to buy us out of administration I was really happy.

"We were – through no fault of our own – put in a situation where I was watching our business fall apart. It was having huge personal consequences for our many fantastic employees whom we have had to let go.

“With Rekom we get an owner that knows the industry, who will reopen most of the venues we have had to close down and are ready to invest in developing our position in the UK. So, with that in mind it was an easy choice to say yes to become part of the future of Rekom.”

Deltic's portfolio included the Pryzm, Eden and Bar & Beyond brands.

Related topics: Business

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