THE company that owns Wrexham's ATIK nightclub is planning to call in administrators. 

Rekom UK said it comes after an “extremely difficult” year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.

It said tough conditions have particularly affected some of its “larger nightclubs”.

The firm, which runs roughly 35 clubs and 12 late-night bars across the country, said it had filed a notice of intention to appoint administrators for a number of companies within the group earlier on Monday.

However, Rekom UK said it is "too early" to say what the announcement means for its ATIK Wrexham nightclub, and that in the meantime it is "business as usual". 

The company said the “notice of intention” gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.

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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."

Mr Marks added: “It's 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 restructure 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.”

The business had been run as Deltic Group before it tumbled into administration in late 2020 following the heavy impact of the Covid-19 pandemic and was bought by Scandinavian nightclub operator Rekom.