It is understood that ad-ministrators from RSM Ten-on Recovery were appointed to handle the business just before Christmas. In its last accounts the firm was quoted as operating 20 nightclubs/bars, largely under the names Groove and Bliss, plus three Chilli White bars.
It is thought that the business may have already undergone a form of restructure or even pre-pack administration, with the majority of the sites still trading.
Yellowhammer Bars, run by Volante Management, returned to profit in the year to 28 February 2011, after its owner, distressed situations fund Agilo, wrote off almost £6.5m in loans. Profit before tax was £4.1m against a loss of £3.1m in the previous year. Loans owed to Agilo were written off following a restructure of Yellowhammer’s debts.
However, for the same period, Company Time saw pre-tax losses widen from £896,678 to £1.5m, with year-on-year same outlet sales falling 6%. Net debt at the period end exceeded £16m.
Yellowhammer was established in 2008 after the purchase of five Sports Café venues and 23 Candu Entertainment bars and clubs.
In August 2010, Agilo denied reports that the business had been placed on
the market with a price tag of £18m
