According to Sky News, Deltic Group, which owns the Atik and Pryzm chains, has asked the accountancy firm BDO to find new investors who could help avert its potential collapse.
Pryzm and Atik nightclubs employ 2000 people and have 52 venues UK wide. Due to the pandemic it has not been able to operate and is facing a cash crunch. Staff will have been furloughed and rent and rates are not due but ultimately need to be paid.
In a statement issued to Sky News, a Deltic spokeswoman said: "The unprecedented impact of the COVID-19 pandemic on the UK's late-night sector has been well-publicised''.
"Deltic's board of directors is working with advisers BDO to assess all options available to the company, including the possibility of bringing in new equity partners.''