Partner Article

Bar firm suffers under recession

Jobs at entertainment group Absolute Leisure are under threat after administrators were called in. 50 jobs are thought to be at risk at venues such as The Lounge and Cocomo’s Restaurant in Newcastle.

The company is struggling to survive in the recession, which is causing one pub to shut every 10 days in the region.

Absolute Leisure’s turnover has almost halved to £5m from £9m in 2005.

Gerald Krasner, from Newcastle administrator Begbies Traynor, said: “There is nothing about this administration that has anything to do with anything other than the crisis that has hit the leisure market.

“The fact is that we are experiencing the biggest economic crisis in decades and it could be argued that Newcastle has become overpopulated with bars and clubs.

“Despite the current situation, we remain confident that we can find a buyer for the sites, as they are all to be found in prime locations.”

The administration casts doubt over Absolute’s owner Michael Quadrini’s controversial plans to open a lap dancing club, called Purple Door, in the basement of The Lounge.

Mr Quadrini had been planning to turn it into a £10m office and restaurant complex after receiving planning approval last year.

Absolute also has a number subsidiary companies, including Metwall and Youngkeen, but most of these have been dormant for some years and will not be handled by the administrators.

This was posted in Bdaily's Members' News section by Ruth Mitchell .