The squeeze on UK bingo which has seen around 30% of all British bingo halls close since 2019, continued this week, with the sad news that Majestic Bingo, who operates eight bingo halls in the UK, has called in the administrators.
The independent bingo chain has, over recent years, seen its number of bingo venues halve, as first, the COVID lockdowns and then the cost of living crisis decimated the once profitable UK bingo business.
Interpath Advisory, which has been appointed to handle the administration, has said that said they would continue to trade the venues as a going concern whilst they explored options for a sale of the business and its assets. It is understood that, in total, 143 jobs are at risk.
Tim Bateson, director at Interpath Advisory and joint administrator, said:
“Majestic is one of the UK’s most recognisable independent bingo operators, but in recent years has seen trading adversely affected by the impact of lockdowns during the COVID-19 pandemic, as well as the cost-of-living crisis. We will continue to trade the business in the immediate term while we seek a buyer for the business, and would encourage any interested parties to make contact with us as soon as possible.”
Majestic Bingo Online is a separate entity that is not in administration.
Rising Costs Hit Profits
It is a sad end to the Majestic Bingo business, having been established in 2014 and profitable in 2019. At the end of 2021, when its last available accounts were published, the company employed around 234 people. The accounts show that the company's liabilities for the full year to 31 December 2021 exceeded its assets by £5,832,000.
Despite seeing a surge in turnover, operating and administration costs forced the Spalding-headquartered company to sell its clubs in Castleford and Mexborough. Majestic Bingo has since gone on to sell its clubs in Barrow, Mansfield, and Durham.
A serious fire in its Spalding venue in May 2021 saw that venue close, with staff retained on full pay until August 2022, when it was announced that Majestic Bingo would not reopen that once profitable venue.
The company also cited the cost of living crisis, rising inflation, and soaring energy costs for its poor post-pandemic performance
Bingo Daily reached out to Majestic Bingo for comment, but our questions on its future were not answered.
Ben has been an massive bingo enthusiast and fan since playing at the seaside as a kid. Dedicated to bringing you the latest and best bingo news from the UK