Luminar hails major clubs disposal

LEISURE operator Luminar is rejigging its focus following the sale today of 49 nightclubs to a management team for £27.1m.

The company, which runs the Chicago Rock Cafe and Jumpin' Jaks chains, said the unbranded clubs around the UK, including Liberty's in Manchester, formed the majority of its enterprise division. The clubs are among 63 that Luminar had previously identified as non-core and suitable for sale. Twelve others have already been sold and another two will be disposed of separately.

The management team, led by the division's managing director Tim Roberts and Craig Grant, the finance director of the company set up to bid for the division, is backed by Close Brothers Private Equity.

Luminar is going to use the proceeds to strengthen its balance sheet and develop its core nightclub business. It will now focus on the 125 other clubs in the nightclub portfolio, which are known under the Oceana, Lava Ignite, Liquid and Life brands.

Luminar chief executive Stephen Thomas said the sale effectively completed Luminar's exit from the businesses in the enterprise division. He added: 'It will allow management to focus on the key steps in Luminar's strategy of developing the branded estate and consolidating its position as the leading operator in the late-night market.'

Last month, Luminar said it was considering selling its entertainment division, which includes 56 Chicago Rock Cafes and 16 Jumpin' Jaks bars, to focus on its nightclubs. A spokesman said the company was considering whether to sell or keep the entertainment division, although no decisions had yet been taken.

Luminar has had a difficult year. Last month it revealed pre-tax annual losses of £14m, worse than the £11m deficit it reported a year ago. The company said 2004 had been a 'year of transition'. It parted company with respected finance director Andrew Burns. Since then, however, it has appointed Nick Beighton, a seven-year veteran of Matalan, though he has yet to join the company. Luminar has also lost operations director Alistair Burford this year ? he left at the end of May.