Luminar sells 26 clubs for 19p each

Luminar Leisure has sold 26 nightclubs for 19p each to Cavendish Bars.

Cavendish has agreed to buy the leaseholds via the sale of five disposal companies for £1 each.

The disposal allows Luminar to off-load the sites, which reverted to it when Candu Entertainment went into administration.

The disposal companies are responsible for all of the leases of the units being sold and are contingently liable as guarantors for a number of other non-core units, including all of the leases relating to units that were sold by Luminar to Candu in June 2005.

Luminar will now have 90 sites and has agreed to pay Cavendish £800,000 by way of a reverse premium.

It said the disposal would result in an overall net loss of £9.9m and a pre-exceptional loss before tax of £1.5m for the year to 28 February 2008.

However, Luminar has shed itself of the associated losses and liabilities of the sites.

"The disposal completes the strategy of streamlining the group's activities,"​ said chief executive Steve Thomas (pictured​).

"It releases the group from liability for those units going forward and from the cost of having them on our books.​

"With a clear strategy we have built a strong business that is positioned well in its market place and will continue to generate significant sums of cash.

"We remain focussed on further developing a business that delivers excellent returns for shareholders."

Ruthless trimming​

Analysyt Mark Brumby of Blue Oar securities said: "This disposal could be seen as a ruthless trimming of the tail. ​

"The landlords may squeal but the legal advice taken by Luminar would suggest that this will stand.

"Rebuilding trust with contract counter parties going forward may be an issue.

"The late-night market remains a deathly-difficult place to be but Luminar, in some of its branded outlets, has a number of category killers.

"Certainly a number of operators (CanDu, Sports Café, Soho Clubs & Bars) have been killed and more may follow."