Luminar offloads bar chains

Late-night venues operator Luminar offloaded its Chicago Rock Café and Jumpin’ Jaks sites today in a deal worth £76.8m (€114.7m).

The under-performing estate has been up for sale as part of plans by Luminar to focus on dancing venues, including the brands Oceana, Liquid and Lava.

It plans to return proceeds from the deal to shareholders, as well as reduce its own corporate cost base by £3m (€4.4m) a year.

The disposal estate features all Luminar’s 54 Chicago Rock Cafes, 13 Jumpin’ Jaks and 31 predominately unbranded sites from Luminar’s nightclubs arm.

As well as receiving £76.8 million from property investment group Prestbury, Luminar will have a 49% shareholding in a new company set up to run the venues.

Luminar currently has 99 dancing venues but has set a target of operating from 120 units.

Chief executive Stephen Thomas said: “This transaction is the best possible outcome for shareholders, allowing Luminar to be solely focused on branded destination dancing venues and accelerate our strategy.

“Under their new ownership, these businesses will have the opportunity of reaching their full potential.”