Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 9°C

ESTD 1874 Search

UK: Rileys to close 25 pool and snooker clubs with the loss of 146 jobs

16:17 23 November 2012

Pool and snooker clubs chain Rileys is to close 25 venues

Pool and snooker clubs chain Rileys is to close 25 venues

Archant © 2007

POOL and snooker clubs firm Rileys is to close 25 clubs with the loss of 146 jobs after slumping into administration, it emerged today.

shares

But a so-called pre-pack deal, where a sale of the business is agreed before insolvency proceedings start, will see private investors take on the remaining 625 staff and 78 clubs.

Among the clubs which will continue operating are those in Ipswich, Colchester and Norwich.

Allan Graham, one of the joint administrators from accountancy firm KPMG, said: “The combination of difficult trading conditions and a significant number of loss-making sites meant that the company was unable to continue trading on a solvent basis.

“However, the business has a large and loyal membership base, which made it an attractive acquisition opportunity.

“We are pleased that we have been able to rescue the large majority of the business with today’s sale to a private investor. Unfortunately a buyer could not be found for the remaining sites, which has resulted in a number of redundancies on our appointment.”

It is the second time the Milton Keynes-based business has gone into administration in recent years. In 2009, 198 staff lost their jobs when the company called in administrators after suffering from a downturn in trade and large debts.

Rileys chief executive Maurice Kelly said the company had suffered cash flow and trading difficulties as the double-dip recession put pressure on consumer spending.

He said: “We have not been immune to those problems experienced by retailers.”

Mr Kelly also blamed the failure on the smoking ban and changes to the Gambling Act which disadvantaged commercial snooker clubs.

But he said today’s deal would see Riley’s get “significant” investment from private sources.

Rileys, which operated 165 clubs at its peak, was founded in the 1870s by Irish entrepreneur E J Riley, who lived in Manchester.

shares

0 comments

From left, Chris Chamberlain from HTK, Vicki Cole from Crafted and Helen Dodman from Ipswich Central, the three organisations behind the Destination Digital conference.

The company behind the delivery of the Ipswich town centre Business Improvement District project has teamed up with two local digital specialist to stage a conference on online marketing for the tourism and hospitality sectors.

French Connection has warned that it faces a substantial loss when it posts its annual results.

Fashion chain French Connection today warned that it now expects to make a big annual loss after seeing its recovery hopes dashed by a difficult spring trading period.

Andrew Harrison, managing director of Stansted Airport.

Manchester Airports Group, parent company of Stansted Airport, scored a four-star rating in Business in the Community’s 2015 CR Index.

Dominic Casserley, group chief executive of Willis.

Global risk advice and insurance broking firm Willis has launched a 550million euro (£393m) offer to take full control of the French broker Gras Savoye.

Sainsbury's is to cut 800 jobs as part of a restructuring of its store operations.

Sainsbury’s is to cut 800 jobs as it becomes the latest supermarket to restructure its operations in the face of tough trading conditions.

The CWind Sword offshore support vessel.

Colchester-based offshore service vessel manufacturer CTruk has won an order to supply two more of its MPC22 boats to sister company CWind.

Kay Allen, founder of Trading for Good, and Paul Winter, chief executive of Ipswich Building Society.

Ipswich Building Society has been presented with a Responsible Business Award at a Trading for Good East of England event held in its home town.

Savills has agreed a deal to acquire Smiths Gore.

Property services group Savills has agreed the acquisition of residential and rural agency chain Smiths Gore for an undisclosed sum.

Signage outside the Birds Eye factory in Lowestoft.

The company behind the Birds Eye frozen foods factory in Lowestoft has been sold by private equity firm Permira to a acquisition specialist based in the United States.

Tesco has reported a loss of £6.4bn for 2014.

Supermarket giant Tesco has slumped to a £6.4billion annual loss after taking a massive writedown on the value of its property portfolio.

Most read

Most commented

Topic pages