Deloitte administrators appointed as Rileys shuts pool halls
A quarter of Rileys pool and sports bars shut down as Deloitte administrators seek to save struggling business
BELEAGUERED pool and snooker hall chain Rileys has been forced to shut 15 of its sports bars after failing to rectify financial difficulties.
Deloitte administrators Rob Harding and Ian Wormleighton were called in on Monday and immediately closed a quarter of its venues and cut head office jobs, resulting in 124 redundancies as they seek to stabilise the business.
A further 400 jobs are still at risk at the leisure company, but Deloitte’s administrators said the remaining 44 venues would trade as normal.
Harding, said: “Following our appointment it has been necessary for us to implement certain cuts immediately. We are now working to stabilise the business whilst we consider our options for securing the best outcome for the company’s creditors.”
Established in 1878, Rileys was acquired by Greybull Capital two years ago via a pre-pack administration.
Pre-pack administrations are when the sale of the business is marketed prior to the company entering administration and subsequently sold – often to the company’s former directors – on appointment of administrators. Pre-packs have been much-maligned over concerns of a lack of transparency in the process, where creditors are usually left out of the loop until the sale has taken place.