Deltic warns landlords firm will collapse without sale

By Nikkie Thatcher

- Last updated on GMT

Doors shut: nightclubs have been closed since the first lockdown in March, with the Government keeping tight-lipped on a reopening date
Doors shut: nightclubs have been closed since the first lockdown in March, with the Government keeping tight-lipped on a reopening date

Related tags: Late night operator, Nightclub, Finance

Late-night operator Deltic Group has warned its landlords it could collapse if a sale isn’t agreed soon, reports have stated.

Nightclubs have been closed since the first lockdown in March, with the Government keeping tight-lipped on a reopening date.

In a letter seen by Sky News​, Deltic chief executive Peter Marks gold landlords a rent-free agreement was essential.

This was because there is “no interested party is prepared to proceed and accrue a rental liability without the knowledge that long-term occupation of the property can be secured”.

No option

Marks also said without the business being successfully sold, it will have no option but to close.

Sky News ​also reported the Deltic boss said the firm’s management team firmly believe when they are allowed to reopen, they will have a “viable, long-term business”.

This follows the nightclub firm pushing the Government for a seven-figure monthly bailout package​. According to reports, Deltic was 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.​​

Firm offer

However, ThisisMoney.co.uk​​ reported 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.

If no deal is reached, Deltic will be put into administration or a CVA process.

The firm had already revealed it was slashing 402 jobs in a redundancy consultation​ earlier this year (September), across its estate after a prolonged period of closure with no reopening date announced yet.

This meant Deltic, which has 53 sites nationwide including brands Pryzm and Eden, would lose 10% of its 4,000 workers.

Related topics: MA500 Business Club

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