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Source: Stock.XCHNG

Cash flow problems hit nightclub chain

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28th May 2013
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Administrators from Deloitte have been appointed to the Atmosphere chain of bars and clubs across England and Wales after the company failed to deal with its cash flow problems.

Deloitte partners Daniel Butters and Adrian Berry were appointed joint administrators to Atmosphere Bars and Clubs Limited, Atmosphere Topco Limited, Atmosphere Bars & Clubs (Kent) Limited and Atmosphere Bars and Clubs (Lancs) Limited.

Butters said: “Unfortunately, as a consequence of cash flow problems, the decision was taken by the directors of Atmosphere Bars and Clubs to place the company into administration.

“We are continuing to trade the business and all venues remain open whilst seeking a sale as a going concern.”

Atmosphere was founded in 2010 and operates 24 licensed premises, including 19 Chicago’s bars, three Modello bars and two nightclubs. It operates from Milton Keynes and has 75 full-time and 418 part-time employees.

In January Atmosphere chief executive Paul Harbottle stepped down and was replaced by former Searcy’s managing director, Christian Rose.

A market statement said: “Paul has implemented a number of strategic, commercial and operational initiatives that have improved the underlying performance of the business, leaving Atmosphere Bars and Clubs in a strong position for the future.”

Since the start of the year a number of bars and pub chains have gone into administration including Antic, Fat Cat and most recently HK Taverns.

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