News - Midlands

Northampton death club to close

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Sixty jobs are set to go in the East Midlands as administrators at fallen nightclub operator Luminar have announced the closure of 11 locations. Among the venues closing is Northampton's Lava & Ignite, where a partygoer was crushed to death just days before the company collapsed.

The club is one of 11 set to close after Luminar called in administrators last month (26 October).

Forty full and part time jobs will go at Lava & Ignite, while the closure of Mansfield's Liquid will result in 20 job losses.

Administrators Ernst & Young said the closures, which will result in the loss of 300 jobs, were part of its "ongoing strategic review of the business".

Ernst & Young said: "This exercise represents an acceleration of management’s ongoing turnaround plans for the business and reflects a rationalisation of the loss making clubs already identified by the group as “non-core”.

"The closures will regrettably result in the redundancy of c.300 full and part time employees. Employees affected by these closures will be offered appropriate support and advice throughout the redundancy process. "

Joint administrator Alan Hudson said the closures leave a core estate of profitable trading clubs which attracted interest from a number of potential buyers.

Luminar's remaining portfolio of night clubs will continue to trade as a going concern as the administrators seek a buyer for the business, he added.

Its licence at Northampton venue Lava & Ignite was suspended last month after a 22-year-old student was crushed to death while attempting to exit.

According to reports, the company fell into administration with debts of about £87m. The plug was finally pulled when three of its bank lenders refused to bail it out.

Hudson added: "The core estate of clubs that were open this weekend delivered excellent trading results over what was a very busy Halloween trading period for the business.

"We would like to thank the management, employees and key suppliers who have provided their support in helping us to ensure that the business continues to trade, and provide us with the best possible opportunity to secure a sale of the business as a going concern."

 
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