The figures, from the Night-Time Industries Association (NTIA) showed the late-night sector had seen a drop of more than 10% in the past 12 months alone.
The independent segment of the market had been hit the hardest with a 35% decline since June three years ago and more than 100 independent nightclubs had been forced to shut permanently in the past year.
According to the trade body, rising expenses such as rent, utilities, labour and maintenance have contributed to the decline across the nation with these challenges being further compounded by the ongoing global uncertainties due to the pandemic.
The data showed in June 2023, there were 873 nightclubs – down from 994 in the same month last year.
In June 2021, there were 1,095 outlets, illustrating a drop of 100 against 2023 figures. However, in 2020 there were 1,266, some 393 more than this year.
The NTIA called on the Government to consider tailored relief, regulator flexibility and other supportive measures to help mitigate the pressures faced by the sector.
NTIA chief executive officer Michael Kill said: “The recent figures from CGA by NIQ are extremely alarming and if taken back to 2019, show an even more dramatic pictures for these businesses, with losses nearer 40%.
“These businesses are facing some critical challenges, with many not knowing whether they will survive over the coming months.
“We have constantly highlighted to the Government the concerns around these businesses, particularly independent venues."
He added: “Without further support, we may lose many more of these businesses before the end of the year.”
Recently, Kill commented on the Bank of England’s interest rate rise, saying he was disappointed with the news.
He added: “Our industry can play a big part in supporting the Government in bringing down inflation if we are given the platform to trade.
“The Government needs to tackle some of the short-term barriers to investment and growth, getting a handle on energy, food and drink costs, tackling sector workforce shortages and removing limitations to trade through deregulation.”