One of Southampton's top nightspots is facing an uncertain future after its owners announced they were calling in administrators.
Rekom UK said it was "too early to tell" if the move would affect Switch, which is an important part of the city's night-time economy.
It comes after another Southampton nightclub, Suburbia, closed its doors for the last time following low turnouts to gigs and club nights.
The Onslow Road venue shut on January 6 after struggling to cope with the impact of the pandemic and the cost-of-living crisis.
Switch, which describes itself as the heartbeat of south coast clubbing, has welcomed Stormzy and other top artists.
But like many other nightspots it has been hit by increasing costs and clubbers cutting back as a result of rising inflation.
READ MORE: Southampton nightclub Switch addresses speculation that it will be closing for good
Now the country's biggest nightclub firm is drawing up a restructuring plan that could result in venues closing for good.
Rekom, which runs 35 clubs and 12 late-night bars, has filed a "notice of intention" to appoint administrators for several companies within the group.
Chairman Peter Marks said it would give the business "breathing space and protection" to work with lenders, landlords, and other stakeholders on the proposed restructuring.
Rekom's 2023 trade figures reflect the higher living costs faced by many of the young adults and students who use its venues.
READ MORE: Switch set to host pop icons from the 90s in night of nostalgia
The firm also has to find an extra £2m in wages after the government announced the minimum wage would rise in April.
Mr Marks said 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.”
A company spokesperson told the Daily Echo: "At this stage, it is too early to say what the announcement will mean for Switch Southampton, but in the meantime it is business as usual and the club will remain open."
The business was previously run as Deltic Group, which went into administration during the early stages of the pandemic and was bought by Rekom.
The company says its bars in Finland, Denmark, and Norway will not be affected.
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