Deloitte has been appointed as administrator to Rileys Sports Bars, a chain of sports venues that has gone into administration just months after its initial rescuer Greybull Capital put it up for sale. Deloitte will explore future options for the company, and oversee the reorganisation plans.
Rileys Sports Bars is a chain of multi-leisure sports venues, established in 1878 by Manchester entrepreneur Edward John Riley, that specialises in in snooker/pool, darts, bingo and screen sports. The company operates in Birmingham, Coventry, Solihull, Wolverhampton and Worcester, and has more than 500,000 members and about three million customers on a yearly basis.
Despite this big fan base, Rileys has found itself more than once in financial trouble, as was the case in November 2012 when it went into administration caused by continuing cash flow and trading difficulties. The company was acquired by private investor Greybull Capital via a pre-pack administration*, that saved 625 jobs and 78 clubs. Now, two year’s down the road, the company once again went into administration after failing to fight off creditors, just months after Greybull Capital has put the company up for sale.
Last week, professional services firm Deloitte has been appointed as administrator to Rileys Sports Bars. Robert James Harding and Ian Colin Wormleighton will act as Joint Administrators, and manage Rileys’ affairs, business and property. On coming in, the Joint Administrators immediately closed 15 venues.** This resulted in 104 redundancies and another 20 at the headquarters in Milton Keynes. “Following our appointment it has been necessary for us to implement certain cuts immediately. We are now working to stabilise the business whilst we consider our options for securing the best outcome for the company's creditors,” comments Harding.
In addition to the 124 lay-offs, another 400 jobs are at risk, but while Harding and Wormleighton explore future options for the company, the remaining 44 venues will trade as normal.
* Pre-pack administration is when the sale of a company is marketed prior to the company entering administration. The company is subsequently sold, often to former directors.
** Closed venues: Belle Vue (Manchester), Cardiff, Coatbridge, Derby, Edinburgh, Exeter, Guildford, Hull, Luton, Peterborough Orton, Peterborough QClub, Plymouth, Rugby, Scunthorpe and Wigan.