Rekom, the biggest nightclub operator in the UK, and which owns brands such as Pryzm and ATIK, has attributed the recent closures of its clubs to young people drinking less. Peter Marks, Rekom’s Chief Executive, has pointed to the cost of living crisis and the rising rental prices that many hard-up students face. Marks stated that the singularly biggest problem Rekom faces is that the cost of living has pushed young people to curtail their evenings out, something that has led to them spending less. The cost of accommodation has risen from around £800 a month to £1,200 in many places across the country.
Rekom filed for administrators last month, and the company reported an ‘extremely difficult year’ in light of the severe challenges faced by the industry at large. The operator was forced to close 17 of its clubs out of the total 43 venues it holds, and almost 500 hundred members of staff were let go as part of its restructuring process. Marks argues that the UK has witnessed a decrease in students going out due to high living costs.
Complaints about the aftermath of the cost of living crisis from students are not new. In a recent report from NUS, it was revealed that 69% of students work part-time, adding that 34% perceive it has a somewhat negative impact on their studies. Over 65% of these students say they are working more than they did last year, and this alongside their full-time study commitments means that for many, socialising or enjoying themselves is no longer an affordable priority according to NUS’ Chloe Field, speaking to the BBC.
Since the beginning of the pandemic, thousands of nightclubs and drinking establishments have been shuttered across the United Kingdom. A new report from NTIA underscores this fact, indicating that over the year of COVID-19, 396 nightclubs were closed. In 2023, England, Wales, and Scotland lost 4% of its nightclubs and saw a 9% decrease in visitors. Consumers should not hold their breath; it remains to be seen whether the British night scene will ever fully recover from the twin crises of pandemic and cost-of-living increases.
Find a list of resources and help during the cost of living crisis here
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