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Thu 17th Dec 2020 - Deltic bought out of administration by Rekom, 42 sites included in deal
Deltic bought out of administration by Rekom, 42 sites included in deal: The Deltic Group, the UK’s biggest nightclub operator, has been bought out of administration by Rekom UK. The undisclosed deal sees Rekom UK take over 42 bars and clubs – a move that could save more than 1,300 jobs. Current Deltic chief executive, Peter Marks, will continue as chief executive of the new UK organisation. Rekom UK is to merge with Rekom Group, the largest nightlife group in the Nordics, when Covid-19 restrictions to the nightlife are lifted. Rekom Group operates more than 130 bars and clubs in Denmark, Finland and Norway. Since 2018, it has been backed by the Danish private equity firm Catacap. Rekom sees the acquisition of Deltic as a major stepping-stone into the UK nightlife industry and as part of Rekom’s ambition to become a leading nightlife operator in Europe. Rekom Group chief executive Adam Falbert said: “We have been looking at the UK market for the past few years as part of our ambition to become one of the largest pan-European nightlife groups. When the opportunity came to take over a strong and well-run group like Deltic, it was a question of finding the right set-up to make it happen. We see a huge potential in the UK market for late-night bars and clubs and are certain the industry will bounce back as soon as covid-19 restrictions are lifted. We are extremely happy Peter Marks and other key figures in Deltic have agreed to become part of Rekom UK and continue the work they have undertaken so well already. They are driven by the same spirit of entrepreneurship that we value at Rekom. Like us, they have been in the business for decades. They know how to create and manage bars and clubs that people love to go to. Remember, Deltic was a very successful business prior to covid-19.” Marks said: “When Rekom emerged to buy us out of administration I was really happy. We were – through no fault of our own – put in a situation where I was watching our business fall apart. It was having huge personal consequences for our many fantastic employees whom we have had to let go. With Rekom we get an owner that knows the industry, who will reopen most of the venues we have had to close down and are ready to invest in developing our position in the UK.” Rekom takes over control of 42 Deltic bars and clubs immediately from a total of 53, 11 of which will be closed permanently. However, due to covid-19 restrictions all the clubs included in the deal will remain closed. The time during this period will be spent on integrating the former Deltic bars and clubs into the Rekom Group organisation, “to reap the benefits and synergies from the best both businesses have to offer such as using the same IT platform and supply system from day one when restrictions are lifted, and the venues can reopen”. Falbert added: “We are aware covid-19 is still very much among us, and the restrictions on our business will remain for some time to come. But we are optimistic the vaccines already approved in the UK and hopefully soon to be followed in the rest of Europe, will spell an end to the restrictions. I am certain we will see the industry bounce back quickly when they are lifted. And not least, I’m certain our guests are eager to get out to have the time of their lives after being under lockdown for almost a year.” Rekom has suffered financially in 2020 because of the pandemic. However, the group said it went into 2020 financially strong after a record-breaking 2019, and the owners have since added both capital and lending facilities to the group “to ensure Rekom is able to pursue its strategic journey and come out of the covid-crisis in a strong position, when restrictions are lifted”. Alantra was the exclusive financial adviser to Rekom and Catacap. Deltic was founded in 2011 after Marks and a group of investors bought the Luminar nightclub group after it went into liquidation. It is thought the group’s investors have taken a £22m hit from the impact of the crisis on the business. Deltic was worth £80m before the pandemic hit, according to Marks.

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