Owner of Oceana warns the club is at risk of closure

The owner of Oceana is reported to have said the company could collapse unless a sale is agreed soon.

Sky News has seen a letter sent by the chief executive of Deltic Group, which owns Oceana and Pryzm nightclubs across the country, to property owners seeking a rent-free period which could last several months.

They say the collapse of the Deltic Group could put more than 1,000 jobs at risk.

Peter Marks said in the letter that “without a successful sale, the business will have no option but to be closed”.

He also said: “The management team of Deltic Group firmly believe that when they are allowed to open they will once again have a viable long term business.

“In the interim any investor will have to fund substantial holding costs to maintain the staff and meet statutory obligation until the clubs can be reopened.”

Deltic, which traded from 52 venues across the UK until the first national lockdown in March, has faced closure of its sites for most of this year due to the pandemic.

The Night Time Industries Association has warned that 60 per cent of the UK’s nightclubs could face closure without further government support during the next two months.

The association said the sector employs 1.3 million people in the UK and contributes £66 billion to the economy.

A Deltic spokesperson said: “The Deltic Group confirms it is in negotiation with a number of its landlords to extend their rent free periods as Deltic enters the final bid stage for the company.

“It has received a number of credible offers and will provide an update in due course.”

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