The future of Creation night club looks secure after a management buyout.

First Leisure, the national chain which owned the club, was put into receivership last month after being hit with a huge rent bill.

Now a group of former First Leisure executives, led by former chief executive John Smith, has bought the club from receivers RSM Robson Rhodes for an undisclosed sum.

The buyout included 22 clubs across the UK which belonged to the First Leisure estate. It was funded by a consortium of banks.

The new organisation will be called The Nightclub Company.

The buyout is good news for clubbers who flock to the West Street venue, which boasts the "biggest student night in Brighton".

Norman Cook, aka Fatboy Slim, has performed at the club, which also hosts gay night Wild Fruit and DJ slots from personalities.

First Leisure was left facing heavy rent arrears following the failures of the Brannigans pub chain and part of Springwood leisure group.

These companies had taken over leases on ten premises originally owned by First Leisure. Following their demise, the financial burden reverted back to First Leisure, which had acted as guarantor on the leases.

The night clubs continued to trade in receivership while the sale was negotiated.

Mr Smith said: "I am delighted to be able to acquire these businesses.

"These venues are some of the top night clubs in the UK, located in some of the best cities and towns.

"More importantly, working in these venues are 1,600 very talented and capable people who, during the past 12 months, have demonstrated they can provide an amazing night out for an ever-demanding and sophisticated audience.

"Creation is an important member of our estate and we will continue to provide its customers with exciting entertainment and great service."

First Leisure was once part of the leisure conglomerate built up by Lord Delfont, which was subsequently broken up by his nephew Michael Grade, the BBC's new chairman.

The business was formed from a management buyout in 2000 led by Candover with support from 3i and PPM Ventures.

The deal originally valued the company at £220 million, including £80 million of equity and bank debt of £140 million.

Candover is understood to have realised half of its stake through a sale and leaseback of some of First Leisure's property after the buyout.

Thursday July 01, 2004