3DE leases pose us no threat, says Luminar

The economic downturn marked another victim last week as 3D Entertainment (3DE), the nightclub operator part-owned by Luminar Group, became the latest leisure sector outfit to go into administration.

Investment firm Sun Capital has acquired 31 of 3DE's 50-odd sites, and while a statement from Luminar said the proceeds of the deal would be "minimal" they were expected to cover a £2m bank loan guarantee given to 3DE in July last year.

Luminar, the UK's largest nightclub outfit, held a 49 per cent stake in 3DE, the value of which was shown on the former's balance sheet at just over £17m. There is also a trading debt of £800,000.

In its statement Luminar said 3DE has traded independently since 2007 "and there is no risk that property leases within the 3DE estate will become the liability of Luminar.

"Similarly, the 3DE business is not consolidated with the trading results of Luminar, and there is no impact on the operational trading results of the group," it added.

With unemployment rising among the nightclub operator's target audience Luminar has been actively seeking a buyer for its stake in 3DE for two years.

In the summer of 2008 there had been talk of an attempt to reverse the business into Regent Inns, the Walkabout operator, a deal which "would be of benefit to shareholders in both businesses", Luminar said at the time. It never came off.

Last week also saw the announcement of Luminar founder and chief executive Steve Thomas's impending retirement after what one observer described as a "torrid year" for the business, which saw it put out a profit warning in January.

Thomas, who is also a director of 3DE, will be replaced by Simon Douglas, former boss of Zavvi, the record shop chain which went bust two years ago.