Deltic Group, the UK’s largest nightclub operator, is on the verge of management struggling to secure a ransom.
With less than 1,500 people, the group operates 52 bars and nightclubs, including Attic, Prism, Eden and Bar & Beyond Chains. Seeks new investment Since October after being closed for several months under government measures to control the corona virus infection.
But Deltic has now filed a notice appointing executives, which is a legal action that provides 10 working days of protection from lenders.
Scotinavian company Recom, which operates more than 100 bars and nightclubs across Denmark, Norway and Finland, and Graebel Capital, a private equity firm that previously supported sick companies including Monarch Airlines and British Steel, are in the process of acquiring Teltic. , But any contract is expected to involve management.
Peter Marx, the CEO of Deltic, the company that founded the group in 2011 by buying up the collapsed luminaire nightclub business with the support of several private investors, has been a vocal critic of the government’s policy on nightclubs, which has not been fully operational since March. He said the government’s failure to provide additional support “slowly put us to death”.
In an effort to survive, Deltic has already cut 1,000 jobs and reused parts of its clubs as liquor stores. But in October Marx said the company would burn $ 1 million a month and that the money would not be out by the end of this year.
The Night Time Industries Association (NTIA), a trading organization, has said that without the necessary financial assistance, three-quarters of night-time economic businesses are now facing permanent closure. It says the government-sponsored Furlough program and subsidies of up to $ 3,000 a month are not enough to keep large clubs afloat, and its costs are higher than those allowances.
Clubs, including Egg London and Glasgow’s Sub Club, launched a campaign to keep the crowd alive.
NTIA CEO Michael Gill said: “Deltic is a prime example of a business stolen from Peter. [Marks] By restrictions. This is not for him or the credibility of the business, it is under control and not proportionally supported to allow him to survive. ”