The future of Oldham's last remaining nightclub has been cast in doubt after the owners of the club hired administrators.

Liquid and Envy, based on Retiro Street in Oldham town centre, is the only nightclub left in the town, however there are now fears its days could be numbered.

Earlier this month, Rekom UK, the UK's biggest nightclub firm and owner of Liquid and Envy,  drafted in administrators as part of a major restructuring which could see a number of venues shut their doors for good.

Rekom, which owns brands including Atik and Pryzm, said the decision comes after an “extremely difficult” year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.

UPDATE: Oldham's last nightclub closed down and staff laid off

It said tough conditions have particularly affected some of its “larger nightclubs”.

The firm, which runs roughly 35 clubs and 12 late-night bars across the country, said it had filed a notice of intention to appoint administrators for a number of companies within the group.

A spokesperson at Limegreen Communications, which manages Liquid and Envy's public relations, said the work by administrators was still ongoing and plans had not been "100 per cent confirmed".

Peter Marks, chairman of Rekom, said the “notice of intention” gives the business “breathing space and protection” to work with lenders, landlords and other stakeholders on a potential restructuring plan.

Rekom said recent trade has been particularly impacted by the heavy toll of the higher cost-of-living on young adults and students who regularly use its venues.

It added that it has seen surges in its costs and would face further pressure from needing “to find an extra £2 million in wages” following the government's  announcement that the minimum wage would rise during the latest autumn statement.

Mr Marks said Rekom has had to accept "that the group cannot continue in its current structure".

He added that some clubs and bars in the country had "outperformed all expectations", but that the firm "must go through this restructure to be able to come out stronger for the future".

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

The business had been run as Deltic Group before it tumbled into administration in late 2020 following the heavy impact of the Covid-19 pandemic and was bought by Scandinavian nightclub operator Rekom.