A nightclub firm that owns Switch in Southampton is planning to draft in administrators as part of a major restructuring which could see a number of venues shut their doors for good.

Rekom UK, which also owns brands including Atik and Pryzm, said it comes after an “extremely difficult” year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.

It said tough conditions have particularly affected some of its “larger nightclubs”.

The firm, which runs roughly 35 clubs and 12 late-night bars across the country including Switch in Above Bar Street, said it had filed a notice of intention to appoint administrators for a number of companies within the group earlier on Monday.

Peter Marks, chairman of the firm, said the “notice of intention” gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.

Rekom said recent trade has been particularly impacted by the heavy toll of the higher cost of living on young adults and students who regularly use its venues.

It added that it has seen surges in its costs and would face further pressure from needing “to find an extra £2 million in wages” after the Government announced a rise in the minimum wage during the latest autumn statement.

Mr Marks said this “led to us having to accept that the group cannot continue in its current structure”.

He added: “We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.

“But we must go through this restructure to be able to come out stronger for the future.

“For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”

The business had been run as Deltic Group before it tumbled into administration in late 2020 following the heavy impact of the Covid-19 pandemic and was bought by Scandinavian nightclub operator Rekom.

Bosses said the Nordic arm of Rekom is not affected.