Gatecrasher’s Revolving Doors

On Aug. 20 the Birmingham Mail reported the locally based chain had gone bust with debts of more than £3.5 million, but the story also said the company aims to continue under a newly formed limited company called Gatecrasher (Birmingham) Ltd.

A report by administrators Duff and Phelps said the previous business, which had operated under the names Tiptoptap Ltd. and Late Night Watford Ltd., had chalked up operating losses of £1.1 million between June 2012 and March 2013.

“Recessionary economic factors and continued competition in certain locations put pressure on bar prices and entrance fees,” the report explained. “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.”

Barclays Bank was the biggest loser with a downside of £3 million.

The new Gatecrasher Co. will continue to run clubs in Birmingham, Leeds, Nottingham, Sheffield and Watford. Gatecrasher chief exec Simon Raine, who founded the original company in 2008, told the Birmingham paper that more than 300 jobs have been saved.

“The restructuring was the only option available to ensure the continued viability and growth of the business and also preserve jobs.”