Lights Dim At Luminar

Despite sales falling by 20 percent across its 76 outlets, nightclub owner Luminar denies it’s in danger of breaching its banking covenants.

The company, which owns the UK’s Liquid and Oceana nightclub chains, says it had a net operating cashflow for the six months ending Aug. 31 that will enable it to keep trading within the terms of its current covenants. This is largely because it made £3.7 million from the sale of four properties.

In a short trading update, Luminar revealed admission revenues sales had dropped by 26.5percent and customer numbers were down 19.1 percent.

Luminar was forced to issue three profit warnings during its last fiscal year, while its share price has dropped by 90 percent to 16.5 pence. The publishing of the trading statement saw them drop further to 14 pence.

Luminar founder and chief exec Stephen Thomas stepped down in March and was replaced by Simon Douglas, who said he’ll target older customers, offer more live music and expand the chains’ range of drinks.

In July he was followed out of the door by chairman Alan Jackson. He was succeeded by John Leach, who had been a large institutional shareholder of Luminar in the past.