Are the lights going out at nightclubs?

A pretty dismal prediction from the UK’s leading operator of night clubs. Up to half of the 2,000+ night clubs may close in the short-term as a result of the credit crunch - if this prediction comes true. Many will simply re-open (using the infamous pre-pack administration). But the story is a terrific example to use with students of how a drop in consumer income and confidence translates into lower demand for discretionary spending on nights out.

As the Luminar director points out:

“Unemployment is a big issue for us. With this recession, the difference is that younger people are being fired. People react by reducing debt and going out less.”