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The Party's Over For Luminar At The Risk Of 3,000 Jobs

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Luminar, which runs Liquid, Oceana and Lava & Ignite clubs in town centres across the UK, has been told by its lenders that they will not extend a recent period of leniency due to end today.

The group, which employs 3,000 full and part-time staff and operates 75 venues, said it will be left with no option but to call in administrators although it declined to say when they would be appointed. Its shares were suspended yesterday.

Luminar has suffered amid the financial gloom as its core market of 18 to 24-year-olds has been hit by high levels of youth unemployment. The smoking ban and changes in licensing laws to allow pubs to stay open longer have also hurt it.

It recorded losses of £198 million in the year to the end of February as sales dropped by 19% to £137 million.

Its lenders - Royal Bank of Scotland, Lloyds TSB and Barclays - threw it a lifeline in May when they agreed to waive banking covenants on a temporary basis to allow the business time to turn itself around. This period of leniency was extended in August but will expire tomorrow.

The group had been trying to drum-up more business by diversifying its offer, including holding Jongleurs comedy nights and introducing WooWoo cocktail bars next to its clubs. It had also been running more student nights and live DJs and acts to refresh its appeal

Trading in recent months had been more encouraging although its profit margins have been squeezed as it put on more promotions.

However, the English riots in August added to its woes and had a "material impact on trading".

The Milton Keynes-based group recently put itself up for sale in an attempt to secure its future.

But it only received offers for part of the business and said these were not sufficient to generate returns for shareholders.

Luminar was recently in the headlines after a 22-year-old student was killed in a crush at its Lava & Ignite club in Northampton.

Nabila Nanfuka, of Neasden, north-west London, was fatally injured and two other women taken to hospital in a critical condition.

Where are all the chavs going to go for their fix of cocaine and techno music now?

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http://www.bbc.co.uk/news/uk-england-15468868

Luminar Group Holdings PLC, which claims to be the UK's largest club owner, said it was unable to meet some of its bank repayment obligations.

So it's a group whose business model was based on ever increasing debt and now cannot service it? It can't meet it's bank repayment obligations, ie we can't pay the interest for the debt we've accumulated?

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Oh dear!

The chavs don't have enough for a night out after the mortgage on their 150k ex council tip hole.....

Never stepped foot in one but a shame if they go boomph as it keeps the scr0ats out of more respectable places!!

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http://www.bbc.co.uk...ngland-15468868

So it's a group whose business model was based on ever increasing debt and now cannot service it? It can't meet it's bank repayment obligations, ie we can't pay the interest for the debt we've accumulated?

RBS to the fore.

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Last time i went to a luminar nightclub there was all of, er, 10 people in there.

Maybe if they expanded their playlist outside of N-dubz, rihanna and a load of music marketed at 8 year olds, it would help.

As Clarkson said 'what's so special about being a DJ? All you need to do is put 'Hi Ho Silver Lining' on and everyone starts dancing!'

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Oh dear!

The chavs don't have enough for a night out after the mortgage on their 150k ex council tip hole.....

Never stepped foot in one but a shame if they go boomph as it keeps the scr0ats out of more respectable places!!

The ones in the big cities are filled with students, sometimes have some good drinks offers on if you can manage a weekday.

The ones in smaller cities/towns are little more than glorified youth clubs and seem to act as little more than a ring for the local nutcases to spar and for fat single mothers to try their hand at karaoke.

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Last time i went to a luminar nightclub there was all of, er, 10 people in there.

Maybe if they expanded their playlist outside of N-dubz, rihanna and a load of music marketed at 8 year olds, it would help.

I wish you ran the Kingston one!

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Let's bring the house down.

These clubs aren't like they used to be. Back in the day when I went to Oceana, o'neils etc etc it was wall to wall with fanny, not any more - take the meat out of the meat market and charge £4 a pint then of course business is going to fall off a cliff!

I hang out around bus shelters, connexion's and skater parks with a bottle of moonshine that's where the prospects are higher (lower). What was it that Oscar Wilde said about being in the gutter again?

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It's a heartwarming tale of 30-40somethings borrowing money from the pension pots of 50-60 year olds, then setting up a business to try to get 18-24 year olds to repay the debt for them through inflated entry and drinks prices. When the 18-24 year olds can't come up with the cash, the two generations above lose out.

Remind you of anything?

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Never been to one of these clubs; but hope the company's demise will be the cue for today's yoof to return to shakespeare drama, the great romantic symphonies, poetry recitals etc. ;)

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This is going to be bad for youth employment. A lot of the bar staff are of the 18 - 24 age bracket who will probably end up losing their job because of this.

Although it will probably increase the revenue of those clubs/pubs nearby as all the punters move into there instead. Silver lining and all that.

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DIS CO-uldn't go on for ever.

The bubble imploded when all the phoney "funky house" clubbers more interested in designer labels, drugs, fighting etc, arived on the scene. Everything (the venues, the music, the dj's) was diluted to the point of crap - they took an Armani store and turned it into TK Maxx.

It will be back, of that I'm certain.

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It recorded losses of £198 million in the year to the end of February as sales dropped by 19% to £137 million.

I make it sales were covering about 40% of their running costs? Even before their sales dropped they were losing shedloads.

Here, I'll make a bet. £10 says when the details come out, the high rent/mortgage costs for the clubs is what put them out of business.

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I make it sales were covering about 40% of their running costs? Even before their sales dropped they were losing shedloads.

Here, I'll make a bet. £10 says when the details come out, the high rent/mortgage costs for the clubs is what put them out of business.

Combined with the fact kids aren't buying bottles of beer at £3.80 a pop when they are high as a kite on a £10 bag of internet sourced Meaow Meaow

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Combined with the fact kids aren't buying bottles of beer at £3.80 a pop when they are high as a kite on a £10 bag of internet sourced Meaow Meaow

I'll think you'll find they are brewing their own. The female children in my wider family get an alcopop homebrew kit, and the lads beer, as they get older, they can start brewing wine. So before they reach the age they need to be, to pay well over the odds for a tipple in the pub, they have see no point in getting ripped off.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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