Night Club, a London escort has gone into business.
The company is reportedly taking action to “deal with debt and reduce costs”, following some financial troubles in the recent past.
London escort agency with some 4000 women shuts shop
According to a report in the Evening Standard, the Night Club escort agency’s directors, Syed and Jasim Mahmood, put the business into administration on Friday. The Mahmood family have been based in Britain since the 1970s and own the Otter pub in Hackney, East London. They also own the exclusive London hotel, Mahiki, in Kensington, where the Queen occasionally dines.
On Friday morning, the administrators announced to staff, on their Facebook page, that the centre was going into administration, the Standard reports.
“We’re sad to announce that Otter SoHo [Night Club] has closed,” read the Facebook post. “We’re taking steps to deal with debt and reduce costs so that we can move forward, and to realise the outstanding obligations on the business’s bank overdraft. Unfortunately, this will affect staff.”
Also read: What will happen to London’s escort business?
The administrators added that some employees had already been made redundant. There are no details available on whether any staff at Glamour London escort were laid off.
The Khayalis – who have been involved in a battle over the family business that was reported in The Sunday Times in 2015 – have previously been involved in legal battles with their brother Raju, who has been embroiled in a financial dispute with the family over Otter SoHo, according to reports in the New Zealand Herald. The brothers have won two High Court cases against Raju and successfully launched an injunction against him, the Herald reported.
Otter SoHo was bought by Mahmood in 2009. The company claims to be the “largest independent sex worker business in the world”, with about 4,000 women working at the centre.
The news comes as the #MeToo movement hits the UK and the US, after a number of prominent men have been accused of sexual misconduct. Last week, allegations emerged against Westminster MP Damian Green, which led the Tories to suspend him. He has denied the allegations and demanded an apology.
To summarize, london escort agency closes with 400 girls working there
What’s interesting is that Night Club is not the only family business to go bust in the UK.