The UK’s largest nightclub operator has started its hunt for new investors in a battle to prevent its potential collapse.
Beleaguered Deltic Group has hired accounting firm BDO to explore emergency funding options to help shore up its finances, Sky News first reported.
The company, which owns the Pryzm, Atik and Eden chains, has 52 clubs in the UK that have been closed since March. It employs 2,000 people across the group.
Last month chief executive Peter Marks began consultations to slash around 400 jobs, warning that the figure could rise to 1,000 if nightclubs remained closed.
A spokesperson for Deltic said: “Deltic's board of directors is working with advisers BDO to assess all options available to the company, including the possibility of bringing in new equity partners.
“Deltic also continues to participate in discussions with the government regarding potential further support for the late-night sector during this difficult period.”
While retailers, restaurants and other businesses in the leisure and hospitality industry were given permission to reopen months ago, nightclubs still remain off limits.
Earlier this week The Night Time Industries Association (NTIA) threatened action after Downing Street unveiled a new three-tier system under which pubs and bars will be closed in some parts of the country.
The industry’s largest trade body, which represents more than 1,400 businesses across the UK’s night-time economy, said it had been left with “no other option but to legally challenge” the new restrictions.
Michael Kill, chief executive of the NTIA, said: “These new measures will have a catastrophic impact on late night businesses, and are exacerbated further by an insufficient financial support package presented by the Chancellor in an attempt to sustain businesses through this period."
NTIA also recently warned that 60% of nightclubs in the UK could face closure during the next two months without further government support.