Lights go dim at Luminar
Published: 27 October, 2011
UK's leading nightclub operator placed in administration
In a move that will shake the leisure sector Luminar, the UK's number one operator of nightclubs, has been placed in administration after talks with its banks broke down.
With a branded estate of 77 venues across the UK, Luminar has the largest square footage of nightclub capacity in the country, operating under the Oceana, Liquid, Project and Lava/Ignite brands.But it has been hard hit by the economic downturn: Admissions in the year to February 2010 stood at 267,000 but a year later this had fallen to 212,000.
The company had been in breach of its banking covenants but Lloyds TSB, Barclays and the Royal Bank of Scotland had agreed a waiver until 27 October 2011 to allow the company to investigate longer term restructuring options. Yesterday the banks told the company the waiver would not be extended.
In a Stock Exchange announcement Luminar said: The company is unable to meet certain of its repayment obligations to the Banking Group which fall due on 27 October. As a result it will also be unable to issue its half-yearly financial report covering the first six months of the financial year on a going concern basis on that date as required by the Disclosure and Transparency Rules.
“Accordingly, the Directors of Luminar have no option but to take steps to place the Company and certain of its subsidiaries into administration and to request the UKLA to suspend trading in Luminar's shares with immediate effect.”
