Luminar, the UK-listed nightclub group whose brands include Liquid, Oceana and Life, has confirmed that negotiations to sell its entertainment division are at an “advanced stage”.

The announcement came with Luminar's interim results for the six months to 31st August 2006, which showed a decrease in pre-tax profit to £17.9m, down by £3.2m on the previous year.

The disposal package will include a number of unbranded nightclubs and will be sold through a sale-and-leaseback scheme to a new company in which Luminar will hold a minority equity stake. 

The entertainment division includes the Chicago Rock Café and Jumpin' Jaks chains. Luminar has attempted to sell the unit a number of times before amid declining sales within the division.

In contrast, Luminar's dancing division of branded nightclubs such as Liquid and Lava & Ignite, has performed consistently well, with the latest results showing a sales increase of 12.1 per cent for the eight weeks to November 2nd. 

Stephen Thomas, chief executive, commented: "The performance of our core business, branded dancing, gives us confidence in the future."