By Karen Peattie
OPERATORS of nightclubs, live music venues and late-night bars in Scotland have warned of “financial armageddon” and significant redundancies without further Government support in the wake of the coronavirus pandemic.
A survey by the Night-Time Industries Association Scotland (NTIAS) of its membership to assess the impact of Covid-19 after the Government-enforced lockdown on March 23 revealed that 83 per cent of businesses are set to make staff redundant with 76% ready to make more than half of their workforce redundant within a matter of weeks.
Some 58% of businesses fear they will not survive longer than two months without further Government support.
Released yesterday, the figures make grim reading for one of the few remaining sectors without any clear road map from the Government on when and how it can reopen after months of lockdown.
The SNTIA is now calling for an extension of the UK Government’s Coronavirus Job Retention Scheme. Michael Kill, the group’s chief executive, said: “Without immediate additional help and clear indication of when we can reopen we are facing financial armageddon.
“These results feel like the final catastrophic blow to the night-time economy and the thousands of staff employed in the sector. Businesses still can’t open their doors and haven’t been given any guidance on when they might be able to. Businesses are being forced to make the heart-breaking decision to let their loyal and hardworking staff go.”
Describing the situation as “potentially fatal for the future of the night-time economy, a cornerstone of Scotland’s diverse arts and cultural tapestry”, Mr Kill added: “I implore the Government to act on this data. Give us a clear roadmap on when businesses can reopen and reassurance that the financial support will be there to keep businesses financially afloat in the coming months.”
Just 19% of respondents said they have been able to repurpose their businesses with these businesses are 40% less trade compared with this time last year.
Mike Grieve, chief executive of Glasgow’s SubClub and director of NTIA, said: “Of all the affected sectors of the Scottish economy, hospitality has been among the hardest hit by the pandemic. In the case of nightclubs, we were the first to shut down and without a shadow of doubt we will be the last of the last to reopen.
“Meanwhile, there has been a staggering lack of support available to keep these economically significant and culturally vital businesses alive to protect the future of our hugely vibrant nightlife sector. Every generation of young people needs to access music and nightlife in safe and professionally managed environments, and I fear that a huge swathe of Scotland’s best operators is on the verge of going out of business entirely, leaving the way open for illegal and unlicensed events to exploit the inevitable demand that exists.
“We urgently need some clarification of the perceived timescales for reopening and without financial support in the meantime the consequences for nightlife in Scotland are potentially cataclysmic.”
Concert promoter Donald Macleod, chief executive of Hold Fast Entertainment & CPL, owner of The Garage and Cathouse Rock Club in Glasgow, and Geoff Ellis, chief executive of DF Concerts, called on the Scottish Government to provide emergency funding for the sector.
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