Nexum Leisure, the nightclub company headed by Paul Kinsey, is preparing to make a major acquisition. Observers think the Nightclub Company and Brook Leisure are two possible candidates for a bid.
The Nightclub Company, in particular, would be a good fit because there is very limited site overlap. Kinsey, boss of First Leisure before setting up Nexum 18 months ago, said: 'Consolidation is a no-brainer. Virtually the whole nightclub sector is on the market. Some people think there will be easier ways to make money going forward (than running a nightclub) - the regulatory regime is not going to get any easier.'
Kinsey's comments came as Nexum revealed an 8% increase in sales for the first half to £8.3m. Nexum, whose main brand is Escapade, was formed in March 2004 when it bought a number of Springwood-owned McCluskey's and Zanzibar sites out of receivership.
Meanwhile, the first Gatecrasher nightclub, a 1,300-capacity venue in Leeds, got off to a good start in its first month. Kinsey, its non-executive chairman, was drafted in in 2003 to put 'proper systems in place prior to rapid expansion'.