Deltic asks Government for £1m-a-month bailout
According to reports, Deltic is currently assessing bids from as many as 20 private equity firms and ten industry rivals after being put up for sale in October.
As reported by The Morning Advertiser (MA), Greybull Capital and Aurelius – alongside Shoreditch Bar Group – are understood to be interested in acquiring the operator of 52 sites under its PRYZM and ATIK brands after the late-night operator launched a merger and acquisition process in October.
However, ThisisMoney.co.uk reported chief executive Peter Marks said he needs a “firm offer” either to buy the company outright or invest alongside existing shareholders by the end of the month or the business will run out of cash in mid-December.
Business worth
If no deal is reached, Deltic will be put into administration or a CVA process.
According to The Telegraph, Deltic has been forced to seek investment via accountancy firm BDO as a result of the eight-month closure of nightclubs.
While the operator was worth £80m before the pandemic hit according to Marks, bids are now likely to be far lower as a result of the business burning through £700,000 per month to cover fixed costs during site closures.
It has also accumulated an outstanding rent bill of £8m.
No support
Marks explained the £1m per month rescue package constitutes just a third of the £3m that Deltic pumped into to the Treasury through tax while its estate was trading successfully.
“How can the Government tell a good business to close for 237 days and counting and not support them? It is a joke,” he said.
The group has already cut its workforce significantly via a redundancy consultation involving around 10% of its workforce and reopened some of its clubs as bars in an attempt to survive the crisis.
