Administrators to several Cardiff-based bars and music venues have confirmed they are searching for buyers.
Management company Beatbox Bars Limited entered administration following financial difficulties.
Simon Plant and Daniel Plant of SFP were appointed as joint administrators to the company on 22 July 2013.
Daniel Plant, group partner at SFP, said: “The companies represented an excellent opportunity for a potential purchaser, especially one with industry knowledge and local connections.
“We are actively looking with the intention to sell the business and its assets as a going concern and are already in discussions with a number of potential buyers.”
SFP has already closed one bar following its appointment, although discussions are on-going for the sale of the Fire Island establishment.
It is also continuing to trade two other well-known bars – Ten Feet Tall and Buffalo – while undertaking a marketing campaign to seek out potential buyers.
Prior to entering administration, Beatbox Bars Limited employed 70 staff and generated annual turnover of approximately £1.5m.
The company acquired the leases of the Fire Island, Ten Feet Tall and Buffalo bars between 2005 and 2009.
However, a major downturn in trader during the winter of 2012/2013 put severe pressure on the establishment’s cash flow, leading to eventual insolvency.
Recent data from the Experian Business Insolvency Index shows a marginal improvement in the UK leisure and hospitality industry, with 0.14% of companies in the industry entering administration in June 2013, down from 0.15% in June 2012.