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Business News Live Business
Clubbing firm goes into administration
By CMU Editorial | Published on Thursday 27 October 2011
Nightclub owner the Luminar Group – which calls itself the biggest nightclub operator in the UK – has gone into administration. The company admitted it was unable to meet some of its bank repayment obligations, and shares in the company were subsequently suspended.
The firm, which owns 75 venues across the country, saw its sales drop by 19% last year, resulting in losses of £198 million. It successfully persuaded banks to lighten its covenant obligations earlier this year as it sought to turn round its fortunes and/or engineer a sale of the company, but neither worked and the company is now likely to default on loans with Lloyds, Barclays and the Royal Bank Of Scotland.
The clubbing company’s collapse comes a week after the licence for one of its venues, in Northampton, was suspended after a crush at the city’s Lava Ignire venue killed one clubber and left another in a critical condition.
