Search

Norwich’s Rileys snooker club survives administration scare

20:11 23 November 2012

Darts star Bobby George during a visit to  Rileys in Magdalen Street earlier this year. Photo: Bill Smith

Darts star Bobby George during a visit to Rileys in Magdalen Street earlier this year. Photo: Bill Smith

Archant

A Norwich pool and snooker club has been spared the axe after the company behind it went into administration.

Pool and snooker clubs firm Rileys announced today that it will close 25 clubs with the loss of 146 jobs after calling in the administrators.

But a so-called pre-pack deal, where a sale of the business is agreed before insolvency proceedings start, means private investors take on the remaining 625 staff and 78 clubs - including the one at Magdalen Street in Norwich.

It is the second time the Milton Keynes-based business has gone into administration in recent years. In 2009, 198 staff lost their jobs when the company called in administrators after suffering from a downturn in trade and large debts.

Rileys chief executive Maurice Kelly said the company had suffered cash flow and trading difficulties as the double-dip recession put pressure on consumer spending.

He also blamed the smoking ban and changes to the Gambling Act which disadvantaged commercial snooker clubs.

Mr Kelly said: “We are desperately sorry that we could not take everyone with us but we’ve worked hard to rescue the majority of our clubs, saving 625 jobs.

“Continuing cash flow and trading difficulties on the High Street has forced this administration but the new company has been fortunate in securing significant investment from private sources to take the business forward and to secure one of the oldest names in British sport.

“The double-dip recession has put pressure on all discretionary spending in the country and we have not been immune to those problems experienced by retailers.

“There have also been on-going issues with the smoking ban and changes to the Gambling Act which disadvantaged commercial snooker clubs.”

Rileys, which operated 165 clubs at its peak, was founded in the 1870s by Irish entrepreneur E J Riley, who lived in Manchester.

Search hundreds of local jobs at Jobs24

0 comments

HOT JOBS

Show Job Lists

Insight

People playing Pokemon Go on St George's Street, Norwich.
Picture: ANTONY KELLY

The breakthrough of Pokémon Go marks the coming-of-age of augmented reality you can carry in your pocket. But what opportunities does it offer for business - and how can they capitalise?

J&S Jewellery was launched three years ago by sisters Jenny and Sophie Laslett and is now turning over £1M a year. Photo : Steve Adams

When launching a jewellery business in late 2012, sisters Jenny and Sophie Laslett used some borrowed money and a spare room. After ordering a small batch from a manufacturer in the Far East, their only customers the first Christmas were friends and family.

Green 100

cover

Enjoy the Green 100
digital edition

Read

Mustard TV

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Shaun Lowthorpe

Business Publishing Editor

|

Sabah Meddings

Business Writer

|

Duncan Abel

Business Development Manager

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100

Business Most Commented

Newsletter Sign Up