THE owner of Southampton superclub Oceana has been thrown another lifeline by banks despite announcing more huge losses and falling sales today.

The Luminar group, which has 77 outlets branded Oceana, Liquid, and Lava & Ignite, cut its debt last year by over £10 million to £82 million following the disposal of 16 outlets, but remains reliant on its banks to keep going.

Luminar's losses rose from £109 million to £198 million in the year to end of February as sales dropped by 19 per cent to £137 million and the group took huge write-downs on its club estate. Losses without these charges were £1.1 million.

Lloyds, Barclays and Royal Bank of Scotland have all agreed to provide cash until the end of August while a long-term recovery plan is put in place. In December the lenders agreed a £99 million refinancing package.

Snow over Christmas, the squeeze on disposable incomes and high levels of youth unemployment all put pressure of its core market of 18-24 year-olds, Luminar said.

Oceana Southampton, in West Quay Road, opened in 2008 as one of the biggest clubs in Europe with a capacity of 4,000.

Chief executive Simon Douglas, who joined last year, said the figures were disappointing but added ''initiatives introduced midway through the year are gaining traction and are diversifying our offerings and revenue streams.''

He is attempting to switch the focus away from dancing toward late night entertainment. It has introduced comedy nights in conjunction with Jongleurs, including at Oceana Southampton.

Last year, Luminar attracted 11 million people to its venues with an average spend per customer of £12.41, compared to £12.46 in the previous year.