Luminar Group Holdings PLC, which runs seven top branded nightclubs and owns 76 venues, has gone into administration. The company, which employs more than 3000 people stated that the company was unable to meet some repayments to top banks, as the reason why they are going into administration.
In February of this year, Luminar announced losses of £198 million after sales had dropped by 19 per cent. The company currently owns money to Barclays, Lloyds and the Royal Bank of Scotland. The three banks agreed to waive banking covenants from 11 May 2011, but expired on 27 October 2011. The banks were not willing to negotiate the terms of the waiver or offer an extension, which left Luminar Group Holdings PLC with no choice but to go into administration.
On 19 October this year, Nabila Nanfuka a 22 year old woman from London died during a stampede at the Lava & Ignite commercial property in Northampton. A 19 year old woman was also injured on the same night and remains in a critical condition in hospital. The licence at the nightclub was suspended by Northampton Borough Council after the incident. A spokesperson for Lava & Ignite, expressed: “The club management and staff are co-operating fully with the local police to find out exactly what happened. Our thoughts are with the family of those involved.”
Brian Binley, Northampton’s Conservative MP, stated: “I am calling for a full and open public inquiry so that we can find out exactly what happened. I would hope that inquiry could make recommendations that would make these places safer for young people.”
The company was recently advertised for sale, but the offers received were only for parts of the business, not as a whole. The company would need a full sale to create returns for its shareholders.
