Iconic LGBTQ sites and workplaces in Birmingham have been saved for buyout as administrators step in

Birmingham gay village LGBTQ hotspots Nightingale, The Loft and Village Inn have been protected by a rescue plan after the firms that run them went into administration. Around 80 jobs were also saved in the rescue deal struck by owner Lawrence Barton.

Under the terms of the package, all three locations will remain open, with staff protected and suppliers fully paid, Mr Barton confirmed. But he warned that changes were urgently needed to ensure the fix was not temporary in the face of huge challenges for the night-time sector.

It is now reviewing the venues, with a particular focus on how to make the most of the 20,000 sq ft Nightingale Club, which is the largest venue but also the biggest loss maker in the portfolio. Opening during the day and new adventures will be among the ideas on the table.

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Mr Barton described the venues’ current financial situation as “horrendous” but said he hoped decisive action would reassure staff and customers. “The last three years (since Covid) have been about trying to keep our heads above water. It was very painful. So many businesses and many jobs have been lost, so I share that pain.

“I see staff looking at me, worrying that they’re going to lose their job, how they’re going to pay their rent or their mortgage, it’s horrible. I would say 99% of the workforce is LGBTQ, my family is LGBTQ, so it was Business has been secured now as a result of this deal, but we’ll have to think about what those changes are.

Rumors of financial problems facing the venues have circulated for some time, but last month it was revealed that GB Holdings Ltd, which operates the Village Inn, Loft Bar and Kitchen and several festivals and events, and Nightingale (UK) Ltd, which runs the legendary nightclub of the same name, both filed a notice of intent with the court before appointing receivers, quickly followed by a second.

The London Gazette confirmed today that both firms are in administration. Joint administrators were appointed to oversee the affairs.

But Mr Barton said an action plan had been agreed which would see The Loft, The Village Inn and The Nightingale sites taken over by Develop Excellence Ltd, another company with links to the Barton family. His mother Gillian, 79, is a co-director with Terence Runcorn, formerly a director of both firms now in administration.

Mr Barton said he was aware of criticism of his personal reputation and business acumen because of his and his family’s extensive links to several companies in the sector, some of which have failed. “Look, I’m fallible, I’m a human being, I’ve made mistakes, I’m not ashamed to say that.

“We’ve done our best as a family, we’re together as a family. We’re from Billesley in Birmingham and this city is so important to us.”

He added: “As an investor, I now have to make sure that this transition (through administration) is carefully managed. There are some staff changes, there will be an overhaul of the way we manage things, but places and jobs are assured. It’s all about making sure the businesses are stronger.”

Over the past 50 years, Nightingale has established itself as one of the UK’s most iconic gay superclubs – loved by the Birmingham community and nationally. But significant debt has accumulated, according to publicly filed accounts.

Why are they in trouble in the city’s LGBTQ venues?

Mr Barton said the nightlife and hospitality sectors had been wild in the run-up to and during the Covid pandemic, when Boris Johnson advised people not to visit pubs or eat out in the weeks leading up to the lockdown. That set the tone for three torrid years, with thousands of venues closing for good.

“It’s not just pubs and restaurants – a third of all nightclubs have closed across the country. We’ve essentially lost two generations of young people who discovered nightclubs and that’s had a big impact,” he said. said Mr. Barton. Rising energy, food and wage costs have also affected the sector.

“I don’t think there’s any shame in saying that those businesses, especially Nightingale, were in a state of financial decline. It really struggled and the directors tried a lot of different approaches to make it work, they tried. bringing in a new general manager, tried different promotional activities, did a lot of things to try to protect the business, while he told me “we need more money”.

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In an attempt to keep things afloat, he took out a lien against his own home, gave a personal guarantee against the venue’s rental and took out personal loans, so determined was he to save the venue from bankruptcy. “It got to a point where the directors said to me ‘we have to make a decision here.’ That was a shock to me. That’s not what I wanted to hear, when you put your life on the line.

“I respected that decision and obviously looked at other options.” He added: “By going into administration, businesses can move forward. These are businesses that matter to me. I have owned Nightingale for 13 years but have used it for 32 years and our staff is our family.

“But the industry, society, the world are all changing. Even within our own community there has been a lot of change. There are fundamental changes in what is happening in LGBTQ spaces, I see it in Manchester, in Soho in London. , and now in Birmingham.

“The equality we strive for has meant gay people can go anywhere now… equally, the party atmosphere we create and the safe space we’ve created also makes it attractive to non-LGBTQ people , especially for women who want to go somewhere safe, where they will not be bothered, may, however, dilute what is offered as a gay space must be protected”.

Another critical issue has been the “invasion” of new flats in the gay village, with Barton involved in opposing plans to build plush residential blocks in the heart of the community amid fears it would change the atmosphere and diminish the appeal of the bars and clubs that depend on the freedom to open late and without fear of disturbing the neighbours. “We need to protect our heritage. Our fear here, as it was in Digbeth, is that our niche spaces are at risk of being swallowed up by big developments and conglomerates,” he added.

Of the nightingale, he said: “We must go on. If that means we have to diversify and change the way we operate, so be it. We need to consider how best to use the physical space at Nightingale. decline, so if we keep doing the same thing, nothing will change.

“It’s a 20,000 square meter place, we need to consolidate that. Will the days of the 2,500 odd man mega clubs return? Is this sustainable? Should we look at daytime use or split the space? These are all questions that we have to consider,” he added.

What do you think? You’re a regular from the gay village – what does that mean to you? Email me at [email protected]