Assets of leisure firm to be sold amid FCA investigation
Thu, 25 May 2023 | ADMINISTRATION
Administrators are seeking a buyer for the business and assets of a Newcastle-based leisure firm amid an ongoing investigation by the FCA. Dead Vibey Leisure Limited operated The Lofts, one of Newcastle’s biggest nightclubs, as well as adjoining pub The Hustle.
The company was placed into administration on May 15 2023 due to issues relating to an FCA investigation into a separate company, WealthTek LLP, operated by Dead Vibey Leisure director and co-founder John Dance.
WealthTek was ordered by the FCA to cease operations in April in order to protect consumers, due to what the FCA called “serious regulatory and operational issues”. An unnamed 48 year-old man has been arrested and interviewed under caution by the FCA in relation to the case.
As a result of the investigation, Steven Ross and Allan Kelly of FRP Advisory were appointed as joint administrators to Dead Vibey Leisure and both of the company's venues have been permanently closed, with all 79 staff made redundant. The joint administrators are now in the process of liaising with creditors and marketing the company’s business and assets for sale.
The Lofts and The Hustle were opened in August 2021 in a building that had formerly hosted the Tiger Tiger nightclub. The venues had a capacity of approximately 1,500 and were described as having delivered a valuable boost to the city’s nightlife in the wake of the COVID-19 pandemic.
Commenting on the process, joint administrator Steven Ross said: “Due to an ongoing investigation by the FCA, the directors of Dead Vibey Leisure Limited appointed us as joint administrators. Regrettably, this also meant all 79 staff were made redundant on appointment. We’re now supporting impacted staff and preparing for an asset sale.”
In Dead Vibey Leisure’s accounts for the year ending September 30 2021, the company’s fixed assets were valued at £2.8 million and current assets at £75,487. At the time, the firm’s net liabilities amounted to £432,570.
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