Nightclub and bar operator Luminar has sold its entertainment division, which includes 54 Chicago Rock Cafés and 13 Jumpin Jaks, for £95.8m.

Under the terms of the deal, Luminar will retain a 49% share in buyer NewCo, an operating company set up for the purposes of the deal.

Luminar chief executive Stephen Thomas said: “This allows Luminar to be solely focussed on brand destination dancing venues. Under their new ownership, these businesses will have the opportunity of reaching their full potential.”

The sale also includes 31 unbranded nightclubs that Luminar deems unsuitable for conversion to destination dancing venues.

It also includes a sale and leaseback programme of the freehold properties within the division, and any surplus cash will be returned to shareholders.

The remainder of NewCo will be owned by property group Prestbury (20%) and Management (31%) – a company led by David Crabtree, who is currently managing director of the entertainment division.

Luminar nears deal to dispose of Chicago Rock Café and Jumpin’ Jaks >>

Second senior figure to leave nightclub operator Luminar in a week >>

Laurel to sell 150 bars to Luminar? >>

By Tom Bill

E-mail your comments to Tom Bill here.

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.