Nightclub firm in cost-cutting drive
Nightclub operator Luminar, which owns the Oceana, Liquid and Lava & Ignite chains, has launched a major cost-cutting initiative after comparable sales dropped 9.9% in the year to February 25th.
The group said that the recent wintry weather put off clubbers from venturing out, prompting the company to launch a “rigorous" cost cutting programme to slash operating expenses over the year ahead.
Luminar, which issued a profits warning in January, hopes last month's appointment of former Zavvi boss Simon Douglas as chief executive to replace founder Stephen Thomas will "bring focus" to the firm.
Mr Douglas takes on the top job at a tough time for the nightclub industry.
The business is branching out in a bid to drive sales, recently announcing a "cross-promotional" trial with music and book retailer HMV, under which Luminar nightclubs and local HMV stores will combine to attract each other's customers.
Luminar commented: "Trading during the last two months of the year continued to be severely affected by persistent poor weather across most of the UK."
"A rigorous cost reduction exercise has now commenced across the business and is expected to lower operating costs significantly in the next financial year, whilst ensuring focus on key trading priorities," added the company.
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