Wed, 15 Feb 2023 | ADMINISTRATION
Administrators are seeking to sell the assets of a casino in Birmingham after efforts to find a buyer for the business failed. Kroll’s Matthew Ingram and Elizabeth Welch have been appointed joint administrators to Birmingham’s licensed Broadway Casino by owner Clockfair Limited.
Like all UK casinos, Broadway Casino was forced to temporarily close due to COVID-19's government-mandated lockdowns and was subsequently unable to recover footfall, impacting its finances and forcing owners to seek a buyer.
The joint administrators were initially engaged in December 2022 to seek a potential buyer for Broadway Casino and its assets via an accelerated merger and acquisition process. However, despite an extensive marketing period, no offers to acquire the casino on either a solvent or insolvent basis were received.
As a result, the casino ceased trading at the end of December 2022, with the representatives from Kroll subsequently appointed as administrators on February 1 2023.
The Broadway Casino opened in 2005 and featured a poker floor, hosting poker tournaments and live music, as well as a restaurant and lounge and bar area. Clockfair Limited is also the owner of the Shaftesbury Casino in West Bromwich, which reportedly remains operational, with no news as to whether it is impacted by the administration.
In a statement, Kroll said: “The casino was forced to close its doors during the COVID-19 Pandemic, in accordance with Government guidelines, which had an immediate impact on its finances. Customer footfall at the casino did not return to pre-COVID Pandemic levels impacting on its working capital and ability to pay its debts.”
In Clockfair Limited’s most recent accounts at Companies House, for the year ending June 30 2021, its fixed assets were valued at £2.1 million and current assets at £1.7 million, with net assets amounting to £722,311.
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