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News - 28 October 2011
West Street nightclub firm finally collapses
Luminar, which owns 75 nightclubs including Oceana and Project [formerly Tru] in West Street in Brighton and employs 3,000 staff, has gone into administration after failing to meet its extended banking covenants.
Luminar Group Holdings plc, the UK's largest club owner, said it was unable to meet some of its bank repayment obligations to Lloyds, Barclays and Royal Bank of Scotland on Thursday. It had already received a temporary reprieve in August [see earlier story] but it has been unable to turn itself around as the economic slump and rising unemployment hit the spending power of its predominantly young customer base.
The company recorded losses of £198m in the year to the end of February as sales dropped by 19% to £137m.
The management had hoped that the promise of Fresher’s Week, Christmas and New Year sales would guarantee another stay of execution from their lenders. The two nightclubs in West Street will continue to trade as normal until a buyer is found.
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