Oceana goes broke

[LDN Blue 7,903]

Music stops for Luminar: 3,000 jobs at risk as Britain's biggest nightclub chain sinks under weight of debts

Britain's biggest nightclub chain has collapsed under the weight of its debts and announced that it is set to go into adminstration, putting 3,000 jobs at risk.

Luminar, the firm behind the Oceana and Liquid chains, owns 75 UK clubs, including the Northampton club where student Nabila Nanfuka was crushed to death last week.

But the firm yesterday announced its banks - Lloyds, Barclays and Royal Bank of Scotland - refused to extend loan facilities, leaving directors with 'no option' but to call in administrators.

Luminar has been fighting for its life in recent months as its core market of 18 to 24-year-olds was badly hit by the downturn and suffered high levels of unemployment.

It recorded losses of £198million in the year to the end of February as sales dropped by 19 per cent to £137million.

Its banks threw it a lifeline earlier this year when they agreed to temporarily extend an £85million debt facility to allow the business time to turn itself around.

This period of leniency was extended in August until today. Luminar announced it was unable to meet its obligations.

'Accordingly, the Directors of Luminar have no option but to take steps to place the Company and certain of its subsidiaries into administration,' the company said in a statement.

Luminar had already suffered several years of declines in its like-for-like revenues, the Financial Times reported.

The smoking ban and changes to licensing laws to allow pubs to stay open past 11pm had hit the company hard and led it to sell off 130 of its nightclubs in an effort to stay afloat.

The group had been trying to drum up more business by appealing to older customers, including holding comedy nights and introducing cocktail bars next to its clubs.

It had also been running more student nights and live DJs and acts to refresh its appeal.

But it recently said the English riots in August added to its woes and had a 'material impact on trading', while its margins had been squeezed as it put on more promotions.

Mark Brumby, an analyst for City brokers Langston Capital, told the Sun: 'Youngsters are losing jobs and having to pay high tuition fees.

'This is forcing them back to the Bank of Mum and Bad, but the Bank of Mum and Dad has run out of cash.'

The Milton Keynes-based group recently put itself up for sale in an attempt to secure its future but it only received offers for part of the business and said these were not sufficient to generate returns for shareholders.

Luminar had been the only London-listed nightclub company. Its shares were suspended at 0.7p, after falling from more than 600p over the past five years

http://www.dailymail.co.uk/news/article-2054149/Luminar-administration-3-000-jobs-risk-nightclub-chain-sinks-weight-debts.html?ito=feeds-newsxml

Anyone here go there? I do. Would be quite something if they do close!

[chrismada9 1,948]

I know the one in Watford, I've been there once I think, I sort of remember going there at the beginning of last year! I'm not really a club person, but it's a real shame they're in financial problems right now!

[Laylabelle 9,395]

Been to the one in Mk and Watford...nice to go to a club that aint mega skanky....