Musicians consider leaving clubbing industry as venues shut across the country
Raheem Rashid reports
A DJ from Wolverhampton has told ITV News Central he’s having to rethink his career in the nighttime clubbing industry because it’s becoming financially unsustainable.
It’s after entertainment company Rekom UK announced the closure of 13 clubs across the country - including Birmingham Pryzm, Nottingham Pryzm and Coventry’s Jumpin Jaks.
The list of closures by Rekom UK:
Basildon Unit 7
Birmingham PRYZM
Coventry Jumpin Jaks
Dartford ATIK
Exeter Unit 1
Kings Lynn Bar & Beyond
Leeds PRYZM
Nottingham PRYZM
Oldham Liquid & Envy
Plymouth PRYZM
Portsmouth PRYZM
Romford ATIK
Swansea Level 17
Watford PRYZM
Watford Steinbeck & Shaw
Windsor ATIK
Wrexham ATIK
James would normally be performing in front of a packed out crowd of clubbers. Instead, the Wolverhampton DJ, who used to work at Nottingham Pryzm, is now looking for work.
James said: "It's been a real hard week or two, I'd say, to have that news. There is no redundancy pay. There is no physical support for you to fall back on. So you save the second you lose a job, you're essentially back out on the streets and you're fighting for work elsewhere."
James says he - and many others - are being pushed out of the industry because of constant job insecurity.
Speaking about the thought of leaving the industry, James said: "It concerns me a lot, especially having a young family to fend for now because of course, you want stability in your life."
He continued: "And as hard as it is you know, it pains me to say I don't feel like this industry can give me the stability that I need. So, I do think sometimes, especially now more than ever, that I do have to start thinking about a Plan B."
Figures from the Music Venues Trust show nearly 1 in 5 grassroots music venues having been lost in the last year alone - while around 4 in 10 of those that have clung on for survival are reporting a financial loss.
The Nighttime Economy Advisor for Birmingham, Lyle Bignon, said: "It has been an unprecedented 12 months for the industry, particularly for the workers in our region, who number 220,000, that's 20% of our workforce."
Bignon added: "And we are seeing community pubs, music venues, nightclubs closing in our cities and towns. And mainly that's as a result of energy prices, cost of living crisis, industrial action and a failure from local and central government to offer meaningful support to the industry."
Just a stone's throw from Pryzm is Heidi’s bar - which has been kept alive by the same owners, Rekom UK. It’s thought smaller venues don’t suffer like bigger clubs when footfall is down and costs are up.
The manager there used to run Atik Tamworth - which is also owned by Rekom UK - and is one of the lucky ones - having survived the company’s cuts.
Jamie Whittingham, venue manager at Heidi's, said: "I think if you look at Tamworth where, for example, it's a community, it's a lot smaller, the town is the venues a lot smaller. And I think with such a venue like that is is all about working within the town and making it the best."
The list of surviving venues from Rekom UK:
Ashford Cameo
Bournemouth Cameo
Brighton PRYZM + Steinbeck & Shaw
Bristol PRYZM + Steinbeck & Shaw
Cambridge Vinyl
Cardiff Circuit + Steinbeck & Shaw
Eastbourne Cameo
Gloucester ATIK
Kingston PRYZM
Milton Keynes Warehouse
Tamworth ATIK
Peter Marks, Chairman of Rekom UK, said: “Rekom UK has now completed its pre-pack administration, resulting in the closure of 17 venues.
"The remaining estate comprises 23 venues, including 10 bars and 13 nightclubs, focusing on the company's strongest performing brands, including Heidi’s Bier Bar and Proud Mary, that will continue to operate, having outperformed expectations since opening.
"We have made every effort to redeploy staff across the business where possible and we’re pleased to have saved around 1000 jobs. Regrettably, however, the reduced estate meant it was inevitable that we would have to make some redundancies. We have informed all colleagues within the organisation of the unfortunate developments that have taken place over the last 18 days.
"This outcome follows an extremely difficult period for the late-night sector, thanks to the combination of the cost-of-living crisis hitting younger generations and students particularly hard, as well as the rising National Living Wage alongside increased business rates and costs of operating.
"Whilst we still recognise there are continued challenges facing the late-night sector, we can now look to the future with optimism. We are confident that this restructure gives Rekom UK a strong core estate that will continue to have a relevant and engaging business proposition in line with consumers’ changing social habits and behaviours.
"As noted previously, this restructuring does not affect the Nordic arm of Rekom.”
While a spokesperson from HM Treasury said: “The Government has and is providing billions of pounds of support for the hospitality industry, including through Business Rates relief, the Energy Bills Discount Scheme and Draught Relief. Specifically, businesses in the retail, hospitality and leisure sector including nightclubs will receive 75% off their business rates bill, up to a maximum of £110,000 per business.
“We know it’s still difficult for many businesses but with inflation more than halved since last year, our plan is working.”
Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know…