Nightclub owner Deltic seeks buyer as Covid-19 dances up a storm
The UK’s largest nightclub operator has kicked off an urgent hunt for fresh funding as it faces potential collapse due to the coronavirus pandemic.
Deltic Group, which owns brands including Pryzm and Atik, has hired accountancy firm BDO to explore options for the company, including finding new investors.
Founded in 2011, Deltic employs 2,000 people and runs 52 venues across the UK.
But the group was forced to close its clubs in March due to the outbreak of coronavirus and is now facing collapse without further support.
The group last month began consultations to cut 400 jobs, with chief executive Peter Marks warning the figure could rise to 1,000 if there was no clarity over reopenings.
While restaurants and bars were allowed to reopen in July with social distancing measures in place, nightclubs have been forced to remain shuttered.
Trade body the Night Time Industries Associations (NTIA) has warned that 60 per cent of UK nightclubs could close without additional support from the government.
A tightening of lockdown restrictions in recent weeks has also deepened concerns about the future of the industry, which contributes £66bn to the UK economy and employs 1.3m people, according to the NTIA.
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.”