The operator of a former Aberdeen nightclub is planning on bringing in administrators as it struggles with “inflation busting rises”.
Rekom, which owned Atik in the city’s Bridge Place, said the last year had been a challenging time for the industry.
It said that tough conditions had particularly affected some of its “larger nightclubs”.
A notice of intention to appoint administrators “for a number of companies within the group” had been filed on Monday, it said.
History of Aberdeen nightclub Atik
Party venue Atik announced in May last year it was taking “a wee break” over the summer months but never reopened.
It was seen as a nightclub of choice for partiers of all ages – with hundreds of students often flocking to the venue for the Skite Wednesdays.
The club was well-known for hosting Under’s Rave and for its three illuminated dancefloors offering a variety of music.
The city centre venue, in Bridge Place, has a long entertainment history as it has been welcoming partygoers since 1898.
Opening as the Palace Theatre, it was then renovated and turned into a cinema in 1931, before becoming the Palace Ballroom in 1959 and then the Fusion Nightclub in 1976.
Prior to Liquid opening at the venue in 2003, the club was also known as Ritzy’s, Bonkers and the Palace, with Institute opening in 2012 and Atik a few years later.
Aura nightclub, owned by Tony Cochrane, opened after a £400,000 refurbishment in September last year.
Cost-of-living pressures
Rekom, which operates around 35 clubs in the UK, admitted last year that its nightclubs were struggling because of poor midweek trading that was usually driven by students.
In a statement, Peter Marks, chairman of the firm, said the notice gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.
As well as cost-of-living pressures on its customers, the firm said that it had seen surges in its costs and expected more difficulty down the road following a rise in the minimum wage during the government’s latest autumn statement.
Rekom said this meant it needed to find an extra £2 million in wages.
Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.
“We must go through this restructure to be able to come out stronger for the future,” he said.
“For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”
The business had been run as Deltic Group before it fell into administration in late 2020 following the heavy impact of the Covid-19 pandemic and was bought by Scandinavian nightclub operator Rekom.
Rekom also owns several bars and clubs in Denmark, Norway and Finland, which it has said won’t be affected.
