The owners of a popular Kingston nightclub have called in administrators due to the impact of the cost of living crisis on nightlife.
Rekom UK, the owner of Pryzm, said the south London venue remains open but financial restructuring must take place to secure the future of the company, which is the largest nightclub operator in the UK.
The Kingston-upon-Thames branch is both a nightclub and a concert venue which has hosted global artists including The 1975 and Billie Eilish.
Higher energy costs, a change in student spending behaviour and an increased wage bill were all factors behind the decision, the company said.
Jon Tolley from Banquet Records in Kingston, which regularly hosts events at Przym, said: “For now, we’re business as usual and there’s no threat to any of the events we’ve announced.
“But every business is struggling, every gig venue and nightclub, and it’s tough because the cost of living crisis is real and Covid-19 hit nightlife more than some other industries.
“I’ve been working in nightclubs for 25 years and it’s different than it used to be because you don’t need to go to a club to hear that song, or to meet people, or to drink, things change.”
Despite these issues, Tolley feels that it isn’t over for nightclubs.
He said: “The feeling when it’s loud and you’re singing songs with all your mates, it’s a euphoric experience and people still love that.
“That feeling is very much alive and kicking.”
There is no current threat to any Banquet Records events at Pryzm, Tolley told SW Londoner.
Rekom also operates the Atik nightclub chain.
The chairman of Rekom said while some parts of the organisation were struggling, others were outperforming expectations such its après-ski-themed chain Heidi’s Bier Bardi in Birmingham and Cardiff.
Commenting on the announcement, Rekom UK chairman, Peter Marks 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.”
Featured image by Karina lago on Unsplash.
