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Nightclub is to shut down with no staff pay-out

Document Cited in Related
Vincent
Published date22 December 2020
Date22 December 2020
The bar and club shut its doors during the Government's lockdown but has now confirmed it will not reopen after its owner entered administration and was acquired by a Danish company. The former Tiger Tiger site was acquired by Deltic Group in November 2018 and was quickly refurbished into Eden. Deltic entered administration two weeks ago putting more than 1,000 jobs at risk around the UK.

The company was partly saved when Nordic nightclub chain Rekom bought Deltic out of administration. Rekom bought 42 of Deltic's sites, saving 1,300 jobs. But Rekom has now confirmed that the deal did not include Eden and the site will not reopen. It understood that between 30 and 40 members of staff at the club have been made redundant.

Rekom has said that it will not be paying the impacted staff redundancy pay. The workers will instead have to apply to the Government for statutory redundancy pay.

A spokesperson for Eden Newcastle: "Throughout these challenging times, our main priority has always been to secure the future of as many of our clubs and our people as possible.

"Previous owners, the Deltic Group, had supported all of its staff and management, including topping up their salaries to 80% of their normal pay yet received no specific sector help from the government to help the business survive. It went into administration because the vast majority of its businesses could not open for nine months, had no sight of a reopening date, and despite many pleas to Government were left to starve to death.

"Following our...

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