Majestic, which operates eight clubs across England and Wales and employs 143 people, has struggled since the Covid-19 lockdowns.
While historically profitable, the lockdowns caused significant reductions in admissions, which have since failed to fully recover.
Majestic was also hit by a serious fire at its bingo hall in Spalding caused by an electrical fault. The venue, which was profitable, never reopened.
More recently, the cost-of-living crisis and the fall in consumers’ disposable incomes since late 2021 also adversely impacted the business.
This, Majestic said, led to both its financial performance and position declining, as well as a number of cashflow challenges. As a result, the directors resolved to place the business into administration.
Administrators appointed
Tim Bateson and Chris Pole from Interpath Advisory were appointed joint administrators to the operator on 7 July. They will continue to trade the business and its venues as a going concern while they explore options for a sale of the business and its assets.
All members of staff were also retained by the administrators to enable trade to continue.
Majestic Bingo Online Limited, the online arm of Majestic, operates as a separate entity and is not in administration. It will continue to run on a solvent basis as usual.
“Majestic is one of the UK’s most recognisable independent bingo operators,” Bateson said. “However, in recent years, it has seen trading adversely affected by the impact of lockdowns during the pandemic, as well as the cost-of-living crisis.
“We will continue to trade the business in the immediate term while we seek a buyer for the business. We would encourage any interested parties to make contact with us as soon as possible.”
Original article: https://igamingbusiness.com/casino-games/bingo/majestic-bingo-placed-administration/
