Pryzm Portsmouth: Popular nightclub closing "with immediate effect" as venue deemed "unviable" financially

Rumours of the Stanhope Road location's demise circulated in January, as administrators were called in by Rekom UK as part of a major restructure project. Staff effected by the closure have been informed and work around redundancy payments is underway.

Peter Marks, Chairman of Rekom UK, said: "We have made every effort to redeploy staff across the business where possible and we're pleased to have saved around 1000 jobs. Regrettably, however, the reduced estate meant it was inevitable that we would have to make some redundancies. We have informed all colleagues within the organisation of the unfortunate developments that have taken place overt he last 18 days."

Jon Roden, Rob Parker and Helen Dale of Grant Thornton UK LLP were appointed as joint administrators to seven UK companies within the Rekom Group. The group as a whole runs roughly 35 clubs and 12 late-night bars across the country. Several cost-related pressures have been blamed for Pryzm Portsmouth shutting down.

Mr Marks added: "This outcome follows an extremely difficult period for the late-night sector, thanks to the combination of the cost-of-living crisis hitting younger generations and students particularly hard, as well as the rising National Living Wage alongside increased business rates and cost of operating."

In total, 17 nightclubs and bars across the UK are closing down. The move follows the shocking closure of Eden in Gunwharf Quays, which vanished without warning just before Christmas. Rekom UK have sold 11 venues - saving 500 jobs - and 12 other sites are unaffected by the closures. Joe Roden, restructuring partner for Grant Thornton UK LLP, said administrators will work with staff throughout the redundancy process.

He added: "It is with regret that despite the an extensive marketing and sale process prior to the administration, and the best efforts of directors and the company's advisors, no interested parties were found for a number of sites. Accordingly, the administrators have had to close 17 sites because the commercial prospects of the affected businesses render them unviable to continue to operate, resulting in 471 redundancies." Residents were left "saddened" when the nes of the potential closure was announced last month, with many saying the city's nightlife has "declined" over the years.