A Perth bar/nightclub could soon be on the market after it was disclosed that the firm that owns it has fallen into administration.
The City complex in South Methven Street encompasses Sportsters bar and the City nightclub, but its future is now uncertain due to Castle Inns hitting hard times.
Both the bar and nightclub have been popular destinations for revellers in Perth, but Castle Inns state that cash flow problems and reduced customer spending have led to the company going into administration.
Deloitte, the business advisory firm, are running the affairs of Castle Inns with a view to selling them.
John Reid and Brian Milne, partners at Deloitte, have been appointed joint administrators to Castle Inns, based in Stirling.
A spokesman for Deloitte said, “Castle Inns was incorporated in 1983 and currently employs over 400 full and part-time staff. It operates in the licensed trade industry with a number of freehold and leasehold public houses and nightclubs throughout central Scotland under the Sportsters and City nightclub brand.
“The administrators will continue to trade from all of the premises currently operating, with a view to selling the business as a going concern.”
John Reid, joint administrator and partner in Deloitte’s restructuring services team, added, “The company had faced significant cash flow difficulties in recent months as a result of the economic downturn, increased costs faced by the business, coupled by reduced consumer spending.”
Sportsters and the City nightclub opened in 2002 at a cost of around £3.5 million. It was once used as a building by the now defunct Tayside Regional Council.