Wed, 21 Aug 2013 | ADMINISTRATION
Birmingham nightclub chain Gatecrasher has been bought in a pre-pack administration deal.
Gatecrasher had multi-million debts including £3 million to Barclays and £500,000 to HMRC when it entered administration.
The business operates four clubs in Leeds, Nottingham, Sheffield and Watford, and was traded under Tiptoptap Ltd and Late Night Watford Ltd, before its recent name change to Gatecrasher (Birmingham) Ltd – a newly formed company.
The Leeds venue is expected to close, though the Broad Street site (in Birmingham) will remain open after the transferral. Over 300 jobs are being preserved, and the business has been restructured to ensure a fresh start.
Duff and Phelps outlined the situation in a report, stating: “Recessionary economic factors and continued competition in certain locations put pressure on bar price and entrance fees.
“This made it difficult to maintain attendance levels, causing the companies to incur losses. The companies owe in excess of £500,000 to HM Revenue and Customs and are unable to pay debts.”
In the past managing director Simon Raine had stated his aims to “own and operate the best nightclub in the world”. Gatecrasher had humble beginnings as a one-off party at a venue in Birmingham.
In other news, on 15 August Gatecrasher was issued a £5,000 fine for selling industrial alcohol as vodka at a student freshers event in its Bed venue in Leeds. While the firm usually carried out ABV tests on its alcohol to ensure safety, it admitted this batch had instead been taste-tested at the bar. Since the mishap in September 2012, Gatecrasher only buys direct from brands and not second tier suppliers.
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