The companies behind iconic LGBT venues in Birmingham’s Gay Village including landmark club The Nightingale are bringing in administrators. The move has come amid rising debts.
GB Holdings Ltd, which operates venues including the Loft Bar and Kitchen and hosts festivals and events, and Nightingale (UK) Ltd, which runs the legendary nightclub of the same name, have both filed a notice of intention in court ahead of appointing administrators. The so-called NOI is a legal notice that warns creditors of their intent while placing a 10 day moratorium on legal action.
It is designed to give companies the space to secure a solution to their financial problems, including bringing in new investors. Speaking about the issue for the first time, Lawrence Barton, who is significantly involved with both organisations, said discussions were under way on a rescue plan but for now all businesses were operating as normal with no job losses.
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“Absolutely no decisions have been taken, and the directors of the companies are looking to secure solutions,” Lawrence said. Terence Runcorn, director at the Nightingale and operations chief for GB Holdings Ltd, echoed the same message: “The most important thing to say is that no decisions have been made and we are confident that there will be investment coming in to secure the situation. We are upbeat that we are in a good position to secure jobs and venues,” he added.
Barton, 50, has been a driving force behind the Gay Village’s success, including taking over The Nightingale when it ran into financial distress over a decade ago. He is said to be desperate to ensure the iconic venues remain viable.
Over the past 50 years, the Nightingale has established itself as one of the UK’s most iconic gay super clubs – loved by the community here in Birmingham and nationally. But significant debts have accrued, according to publicly filed accounts.
The Nightingale owed £1.4m to creditors as of December 2022, according to its most recent accounts; set against assets of £811,000.
GB Holdings (UK) Ltd is two months overdue filing its 2023 accounts and a compulsory strike-off notice was published last Tuesday by the Registrar of Companies. Its most recent accounts for 2022 show assets of £980,323 and creditors due of £1,063,800.
Mr Barton said it had been an on-going struggle to recover from the impact of Covid and the cost of living crisis. A third of nightclubs had shut since August 2022 and ensuring viability was extremely difficult. “The sector has been ravaged by the cost of living crisis, and it has been a constant battle to recover from the impact of Covid,” he said.
Barton is the best known face of the LGBT sector, Birmingham’s night-time economy advisor, a deputy lord lieutenant for the region and chair of Southside Business Improvement District.
What we know about GB Holdings UK Ltd
Lawrence Barton is described as the owner of GB Holdings (UK) on the company’s website, which stated it is a family owned group of high performing businesses operating across the entertainment and hospitality sectors. The website is currently down. Its assets include The Loft Bar & Kitchen, next to the Hippodrome, and the Solihull Summer Fest.
Mr Barton is one of two persons listed by Companies House as having ‘significant control’ of the company, alongside Darren Barton. Each have ‘more than 25% and less than 50%’ shareholdings. Active directors are listed as Terence Runcorn and Gillian Barton.
GB Holdings (UK) Ltd is two months overdue filing its 2023 accounts and a compulsory strike-off notice was published last Tuesday by the Registrar of Companies. Its most recent accounts for 2022 show assets of £980,323 and creditors due of £1,063,800.
What we know about The Nightingale (UK) Ltd
The Nightingale club is an iconic venue in Birmingham’s history and seen as a vital safe space for LGBT people. The Nightingale’s current directors are listed as David Nash and Terence Runcorn. Both Nash and Runcorn are also part of the GB Holdings leadership team, with Nash looking over festivals and venues and Runcorn in charge of operations.
READ MORE: The history of the Nightingale club – from a private men’s club to a safe space for all
Lawrence Barton resigned his director role in October 2022 and Darren Barton in 2014. However, the persons with significant control are listed as Lawrence and Darren Barton, who are said to have shareholdings of more than 25% and less than 50% apiece.
As of December 2022, the Nightingale (UK) Ltd owed £1.4m to creditors, set against assets of £811,000.
Is Birmingham Pride’s future at risk?
Mr Barton railed against suggestions that Birmingham Pride was in trouble as a result of the financial situation of the two companies. Birmingham Pride (UK) Ltd is a separate entity, with its directors listed as Terence Runcorn, David Nash and Lawrence Barton. The person listed as ‘with significant control’ is Lawrence Barton. According to Birmingham Pride’s most recent financial accounts, the balance sheet as of September 2022 showed it had assets of £1.194m and creditors due of £1.111m, leaving net assets of £82,622.