Deltic has been bought of administration by Rekom Group, the Nordic nightlife operator.

The deal sees Rekom UK take over 42 bars and clubs located across the UK, which will save more than 1,300 jobs.

Ten venues will be closed with immediate effect, while 155 people have been made redundant.

Deltic employed 3,000 staff during peak periods, but is thought to have made at least 440 redundant earlier this year as a result of the shutdown.

Deltic CEO Peter Marks and key members of the management team will continue their current roles within Rekom UK.

Rekom Group is the largest nightlife group in the Nordics and operates more than 130 bars and clubs in Denmark, Finland, and Norway.

Since 2018, it has been backed by the Danish private equity firm CATACAP.

Rekom UK is expected to merge with Rekom Group when the night life business gets back to full operation as coronavirus restrictions are lifted.

Rekom sees the acquisition of Deltic as a major stepping-stone into the UK nightlife industry and as part of REKOM’s ambition to become a leading nightlife operator in Europe.

Adam Falbert, Rekom CEO, said: “We have been looking at the UK market for the past few years as part of our ambition to become one of the largest pan European night life groups. When the opportunity came to take over a strong and well-run group like Deltic, it was a question of finding the right set-up to make it happen.

“We see a huge potential in the UK market for late night bars and clubs and are certain that the industry will bounce back as soon as covid-19 restrictions are lifted.”

One of the key factors behind the decision to acquire Deltic was a match in culture and spirit between the people at REKOM and Deltic, with both groups driven by people with long standing experience in the nightlife industry.

Peter Marks, now CEO at REkom UK, said: “When Rekom emerged to buy us out of administration I was really happy. We were – through no fault of our own – put in a situation where I was watching our business fall apart. It was having huge personal consequences for our many fantastic employees whom we have had to let go. With REKOM we get an owner that knows the industry, who will reopen most of the venues we have had to close down and are ready to invest in developing our position in the UK. So, with that in mind it was an easy choice to say yes to become part of the future of Rekom.”

Flabert added: “We are extremely happy that Peter Marks and other key figures in Deltic have agreed to become part of REKOM UK and continue the work that they have undertaken so well already. They are driven by the same spirit of entrepreneurship that we value at REKOM. Like us they have been in the business for decades. They know how to create and manage bars and clubs that people love to go to. Remember, Deltic was a very successful business prior to covid-19.”

Rekom will look to reopen its UK estate when restrictions are lifted. In the meantime it will look to integrate the the former Deltic bars and clubs into the Rekom organisation, to reap the benefits and synergies from using the same IT platform and supply chain.

Falbert added: “We are aware that covid-19 is still very much among us, and that the restrictions on our business will remain for some time to come. But we are optimistic that the vaccines already approved in the UK and hopefully soon to be followed in the rest of Europe will spell an end to the restrictions. I am certain that we will see the industry bounce back quickly when they are lifted. And not least, I’m certain that are our guests are eager to get out to have the time of their lives after being under lock-down for almost a year.”

Rekom has added capital and lending facilities to the group to ensure it is able to pursue its strategic journey and come out of the covid-crisis in a strong position, when restrictions are lifted.

Alantra was the financial advisor to Rekom and CATACAP. The parties have agreed not to disclose the price of buying Deltic out of administration.

BDO business restructuring partners Ryan Grant and Lee Causer acted as joint administrators of Deltic and its associated subsidiaries.