The UK’s biggest nightclub owner yesterday collapsed into administration after banks pulled the plug, putting 3,000 jobs at risk.
Luminar, which runs Liquid, Oceana and Lava & Ignite clubs in town centres across the UK, was told by its lenders that they would not extend a recent period of leniency that was due to end yesterday.
The group, which employs 3,000 full and part-time staff and operates 75 venues, has suffered amid the financial gloom as its core market of 18 to 24-year-olds has been hit by high levels of youth unemployment.
It is understood that administrator Ernst & Young will continue to run the business as a going concern while it seeks a buyer.
The business was hit as disposable income was squeezed, the smoking ban and changes in licensing laws that let pubs stay open longer. The firm struggled to keep up with repayments on its £90m debt as revenue slumped