Iconic LGBT+ venues in Birmingham to bring in administrators due to financial woes but high hopes for rescue

The companies behind iconic LGBT venues in Birmingham’s gay village, including flagship club The Nightingale, are bringing in administrators. The move came amid mounting debt.

GB Holdings Ltd, which operates venues including the Loft Bar and Kitchen and hosts festivals and events, and Nightingale (UK) Ltd, which runs the legendary nightclub of the same name, filed a notice of intent in court before appointing administrators. The so-called NOI is a legal notice that warns creditors of their intention while placing a 10-day moratorium on legal action.

It is designed to give companies the space they need to secure a solution to their financial problems, including attracting new investors. Speaking on the issue for the first time, Lawrence Barton, who is heavily involved with both organisations, said discussions were ongoing over a rescue plan, but for now all businesses were operating as normal with no job losses. the work.

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“Absolutely no decision has been made, and company executives are looking for safe solutions,” Lawrence said. Terence Runcorn, director at Nightingale and head of operations for GB Holdings Ltd, echoed the same message: “The most important thing to say is that no decisions have been made and we are confident that investment will come in to secure the situation. We are delighted that we are in a good position to secure jobs and places,” he added.

Barton, 50, has been a driving force behind the Gay Village’s success, including taking over The Nightingale when it ran into financial trouble more than a decade ago. It is said to be desperate to ensure the iconic locations remain viable.

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

Nightingale owed £1.4m to creditors as of December 2022, according to its most recent accounts; established with assets of £811,000.

GB Holdings (UK) Ltd is two months late in filing its 2023 accounts and a compulsory delisting notice was published by the Companies Registry last Tuesday. Its latest accounts for 2022 show assets of £980,323 and payables of £1,063,800.

Mr Barton said it had been an ongoing struggle to recover from the impact of Covid and the cost of living crisis. A third of nightclubs had closed since August 2022 and ensuring viability was extremely difficult. “The sector has been devastated by the cost of living crisis and it has been a constant struggle to recover from the impact of Covid,” he said.

Barton is the most well-known face of the LGBT sector, Birmingham’s night economic adviser, a deputy lieutenant for the region and the president of the Southside Business Improvement District.

What we know about GB Holdings UK Ltd

Lawrence Barton is described as the owner of GB Holdings (UK) on the company’s website, which it said is a high-performing family business group operating in the entertainment and hospitality sectors. The website is currently down. Its assets include The Loft Bar & Kitchen, near the Hippodrome, and Solihull Summer Fest.

Mr Barton is one of two people listed by Companies House as having “significant control” over the company, along with Darren Barton. Each has “more than 25% and less than 50%” shares. Active directors are listed as Terence Runcorn and Gillian Barton.

GB Holdings (UK) Ltd is two months late in filing its 2023 accounts and a compulsory delisting notice was published by the Companies Registry last Tuesday. Its latest accounts for 2022 show assets of £980,323 and payables of £1,063,800.

What we know about The Nightingale (UK) Ltd

The Nightingale Club is an iconic venue in Birmingham’s history and seen as a vital safe space for LGBT people. The Nightingale’s current directors are listed as David Nash and Terence Runcorn. Both Nash and Runcorn are also part of the GB Holdings management team, with Nash looking after festivals and venues and Runcorn in charge of operations.

READ MORE: History of the Nightingale Club – from a private men’s club to a safe space for all

Lawrence Barton resigned as a director in October 2022 and Darren Barton in 2014. However, persons with significant control are listed as Lawrence and Darren Barton, who are said to hold more than 25% and less of 50% each.

As of December 2022, Nightingale (UK) Ltd owed creditors £1.4m, with assets of £811,000.

Is the future of Birmingham Pride in jeopardy?

Mr Barton criticized suggestions that Birmingham Pride were in trouble because of the financial situation of the two companies. Birmingham Pride (UK) Ltd is a separate entity, with the directors listed as Terence Runcorn, David Nash and Lawrence Barton. The person listed as having “significant control” is Lawrence Barton. According to Birmingham Pride’s most recent financial accounts, the September 2022 balance sheet showed it had assets of £1.194m and payables of £1.111m, leaving net assets of £82,622.