Nightclub owner left with £200,000 debt as he counts cost of pandemic

Michael Ansell, who runs Planet Nightclub in Wolverhampton, has taken out personal loans to keep the business afloat.

He fears nightclubs will be scapegoated if cases rise and will be forced to close once again.

He will reopen Planet on Thursday and hopes no more restrictions will come into force.

Although nightclubs will be able to open from Monday, July 19, Mr Ansell said: "It will be the 22nd for me just because I have got to guarantee a certain amount of people to come in, so I can't risk the overheads.

"I always make money on a Thursday, Friday and Saturday, I won't gamble it on an extra night just in case."

He continued: "I am nearly £200,000 in debt now, I cannot afford to take that gamble. Security staff, door staff, everything else is so expensive."

Asked about the financial impacts of Covid-19, he said: "I had to borrow £145,000 off the bank through various loans.

"Then I had to put money in myself, I had to use my house deposit money. My business is £200,000 in debt.

"That is why when restrictions were pushed back and people were like 'it is only four more weeks'.

"Yes, that is four more weeks of rent, and £1,160 a week. That is nearly £5,000. People don't understand things like that."

Mr Ansell also has to pay maintenance costs and has carried out a refurbishment inside.

He says his business is not a "cash cow" and hopes it will turn profitable once again.

"It will take me six years to pay these loans off, that is why I couldn't borrow anymore against the business, because it is unviable," he said.

"There was a personal loan which I had to throw in as well.

"It was never a cash cow business. I signed a 21 year lease, so it is something for my kids. It will be their first jobs, being a glass collector.

"That was the idea behind it all along, longevity. I don't mind throwing money into the business, I have got another 16 years now.

"In the end, it will turn profitable again. I am not shutting the business down or scraping the money out.

"That is one of the reasons why it has been so difficult. The thoughts of 'I should technically throw in the towel now', during the first lockdown especially.

"Where do I stop? Where do I stop borrowing money? Where do I stop selling my stuff? Do I go for another bank loan?"

However, Michael says he received a boost when a fundraising page was set-up to help him keep afloat.

More than £19,000 has been raised for him in total during the pandemic, which has helped him financially, alongside grants worth around £47,000 which he recieved from the Government.

He said: "It was when the Gofundme started that I was like 'no, there is a lot of support out there for me and the business'.

"Just over £19,000 I have had now. That just says a hell of a lot for the Wolverhampton alternative music scene and just how giving and caring everyone is.

"I always looked at it as bricks and mortar until the Gofundme started up.

"It means a lot more to other people. You have only got to look through the messages.

"Messages like 'I met my husband there', 'I met my best friend there', 'it was always my happy place', 'I could be myself, you were all accepting'.

"I get that now. It is touching, it really is."

He said there have been strict rules around nightclubs which have prevented such venues from opening up sooner.

The Government has asked nightclubs to enforce vaccine passports but Michael said he would not ask customers to use them.

He said: "I do feel nightclubs have been victimised more than any other sector just because everything was a strict no.

"With the fact we can open, and [the Government saying] 'we advise you to do this and that', all you are going to do, when we spike, you are going to shut us down. It is simple as that.

"It will be 'you all went out, you all went and partied. Shut'. I am foreseeing I will be open until September, then the winter will come, and we will be shut for a few months."