Birmingham nightclub chain Gatecrasher has undergone a pre-pack administration deal, securing approximately 120 jobs.
Paul Clark, John Whitfield and Matthew Ingram, partners at Duff & Phelps, were appointed as joint administrators on 2 August.
Following its appointment, Duff & Phelps immediately secured the sale of the business and certain assets to Gatecrasher (Birmingham) Limited, Gatecrasher Clubs and Bars Limited and GLN Trading Limited.
Clark said: “We’re really pleased with the outcome. It’s great news that the future of Gatecrasher as a business and brand has been secured, including approximately 120 jobs.”
The business traded four nightclubs in the centre of Birmingham, Leeds, Nottingham, and Watford, as well as a bar adjacent to the Watford club.
When Gatecrasher entered administration, it owed £3m to Barclays Bank and a further £500,000 to HM Revenue & Customs.
An administrators’ report from Duff & Phelps said: “Recessionary economic factors and continued competition in certain locations put pressure on bar price and entrance fees.
“This made it difficult to maintain attendance levels, causing the companies to incur losses. The companies owe in excess of £500,000 to HM Revenue and Customs and are unable to pay debts.”
On 15 August Leeds Magistrates Court imposed a £5,000 fine on Gatecrashers for selling industrial alcohol as vodka in September 2012 at a student event in Leeds.