Southampton's business community has received reassuring news about one of the city's top nightspots.

Fears for the future of Switch Southampton were raised after the UK's biggest nightclub owner, Rekom UK, announced it was calling in administrators.

But GO! Southampton says it has been told by the club's management that the move will not affect Switch or any other venue in the city.

Switch, which describes itself as the heartbeat of south coast clubbing, has welcomed Stormzy and other top artists.

But like many other nightspots it has been hit by increasing costs and clubbers cutting back as a result of rising inflation.

Daily Echo: Switch says it will not be affected by Rekom's decision to call in administratorsSwitch says it will not be affected by Rekom's decision to call in administrators (Image: Switch)

Figures released a few months ago showed that 34.9 per cent of revellers were going on fewer nights out than in 2022.

Two weeks ago Rekom announced it was drawing up a restructuring plan that could result in some venues closing for good.

READ MORE: Venues at risk as nightclub giant Rekom UK set to hire administrators

The Danish-owned company, which runs 35 clubs and 12 late-night bars, confirmed it had filed a "notice of intention" to appoint administrators for several companies within the group.

Chairman Peter Marks said it would give the business "breathing space and protection" to work with lenders, landlords, and other stakeholders on the proposed restructuring.

Daily Echo: Baby D is among the performers who have appeared at SwitchBaby D is among the performers who have appeared at Switch (Image: Supplied)

At the time Rekom said it was "too early to tell" if the decision would affect Switch Southampton

The company's 2023 trading results reflect the higher living costs faced by many of the young adults and students who use its venues.

It also has to find an extra £2m after the government announced the minimum wage would rise in April.

Mr Marks said: "We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea, have outperformed all expectations.

“But we must go through this restructure to be able to come out stronger for the future.

“For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs."

READ MORE: What Switch Southampton owners said about closure fears

A GO! Southampton spokesperson said: "We are saddened to hear of the possible closure of some of Rekom’s businesses but have been assured this does not affect Switch or any other venues in our city.

"Regardless of this fact, we have reached out to remind Switch of the support that GO! offers to all our 630 businesses, including access to cost-saving experts which is free of charge."