Luminar goes into Administration in UK

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The biggest nightclub operator in the UK has gone into administration following its bankers‘ refusal to extend its loan.

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Off-trade

8 November 2011

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 3,000 full-time and part-time jobs are at risk at the Luminar Leisure Group which runs 75 clubs in various town centres around the UK under the Liquid, Oceana, Lava and Ignite monickers.??Administrator Ernst & Young are running the business as a going concern while a buyer is sought for the nightclubs whose core customer profile, 18 to 24 year-olds, have been hard hit by cuts in spending power and high levels of unemployment.

Luminar struggled with losses of £198 million in the year to the end of February with turnover falling 19 per cent to £137 million.
Barclays, Royal Bank of Scotland and Lloyds helped subsidise operations by temporarily extending a loan last May and again in August when the group failed to see an increase in turnover.
While business in recent months had seen some improvement, August’s riots had a “material impact on trading” despite the fact that it had been putting on more student nights and live DJs and acts.

The nightclub industry itself has been adversely affected by the changes in the licensing laws there allowing pubs open later and of course, by the smoking ban.

 

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