Gatecrasher plans investment after restructuring

gatecrasher GBLeading British-based nightclub brand Gatecrasher is to invest in growing the business after completing a strategic corporate restructuring programme.

The company said the move would allow the club brand “to diversify and continue growth both domestically and globally”.

As part of the restructuring process, the core business and assets of the Gatecrasher brand were sold as a going concern to a new trading group as part of a pre-pack administration.

It followed the appointment of Paul Clark, John Whitfield and Matthew Ingram, partners of global financial advisory and investment banking firm Duff & Phelps, as joint administrators of the previous trading companies, Gatecrasher (Birmingham) Ltd, Gatecrasher Clubs and Bars Ltd and GLN Trading Ltd, in early August.

Safeguarding over 300 jobs at the clubs, the restructuring will allow the Gatecrasher management team to press ahead with “significant” UK and international investment. The company added that the core business remained highly profitable.

Gatecrasher chief executive Simon Raine said: “The transfer of the business to the new company, along with extensive corporate restructuring and refunding of the business, has enabled Gatecrasher to progress on a secure financial footing. We now have a secure and positive platform to continue with our plans for domestic and international events.

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

As part of the restructuring, Gatecrasher will invest heavily in its flagship venue GB in Birmingham. GB, which was designed by Cal Fortis, the designer behind New York’s Crobar and the Mondrian Hotel in Miami Beach, is being remodelled. Impressive new lighting and special effects inspired by the Las Vegas club scene will be added across GB’s four rooms.

Gatecrasher will also continue with huge nights at its flagship Birmingham nightclub which is celebrating its fifth year this October. Up-and-coming DJs booked for the venue include Like Mike, Dimitri Vegas, AN21, Max Vangeli and Morillo. 

The company’s Nottingham venue is also being rebranded to suit local clubbers, and an expansion to capacity is currently awaiting planning approval. Gatecrasher’s Watford nightclub Cameo has also reopened for business after a major property upgrade.

As part of the restructuring, Gatecrasher has closed its Leeds venue Bed, saying that it “no longer fits with the brand’s plans due to its location, size and limitations in terms of development”. However, the group is “actively” seeking a new city centre venue in Leeds with a 3,000 capacity to rival its flagship club GB.

Internationally, Gatecrasher plans for further investment in the global market place with substantial overseas development already underway in Asia and the US. Gatecrasher is also looking at opening clubs in key capital cities including London, New York and Singapore.

Gatecrasher has already opened its first permanent overseas nightclub in Surabaya, Indonesia and plans to develop further within south-east Asia’s burgeoning club scene with immediate plans to open more clubs in Singapore and Jakarta.

Outside of Asia, Gatecrasher will maintain its global touring schedule and also plans to increase events and club nights across Australia.

The flourishing US club-scene will also play a critical part in Gatecrasher’s worldwide expansion with plans in place for clubs and events in the party capitals of Las Vegas and Miami.

The restructuring will also allow for further investment in Gatecrasher’s global events business which will return to producing the events and festivals that originally made the brand a worldwide clubbing phenomenon.

The brand originally ran the high-capacity, trailblazing Summer Sound System festival in the UK and Australia, headlined by the world’s biggest superstar DJs and live acts including the Prodigy, Chemical Brothers and Faithless.

Plans are in place to put on events both in the UK and across the world, with a deal already in place with Donington Park, home to the Download Festival.

A series of 10,000-capacity warehouse events have been planned. The next event is on Saturday October 19, 2013, featuring headliners Paul van Dyk, Ferry Corsten, John O’Callaghan and more. 

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