Pryzm Leeds: Nightclub future in doubt as firm calls in administrators after 'extremely difficult' 12 months

Rekom, the parent company of Pryzm, said in a statement that it had filed a "Notice of Intention" to appoint administrators.

The company owns a string of late-night bars in the country, including Pryzm at the Merrion Centre on Woodhouse Lane.

The YEP understands that it is too early for the firm to pinpoint impact on specific venues in its portfolio at this stage.

The company's boss said the announcement came after an "extremely difficult" 12 months in the industry during the ongoing cost of living crisis.

Peter Marks, Rekom UK chairman, said: "The last 12 months have been extremely difficult for the late-night sector, particularly affecting some of the larger nightclubs.

"This has been the result of the combination of the cost-of-living crisis that has so badly affected the young adult/student market, together with the cost-of-doing-business crisis.

"For example, while the government’s Autumn 2023 Statement saved us £120k on our £5M rates bill, it meant that we had to find an extra £2million in wages. Not only that, the cost of goods and energy have also seen inflation-busting rises. This has led to us having to accept that the group cannot continue in its current structure."

Rekom had originally bought 42 of the former Deltic Group’s UK clubs and bars out of administration in January 2021.

In 2022, Mr Marks said the company was planning to open a minimum of 10 more bars, citing attendance back to pre-pandemic levels.

All venues across the country owned by Rekom remain open as the company seeks advice and further notice is given.

Mr Marks added: "It is not all bad news. We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.

"But we must go through this restructuring to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”