The boss of Birmingham’s best-known lap dancing venue has insisted it is business as usual after an associated company collapsed into liquidation.
Lawrence Reddy, the businessman behind the Rocket Club on Broad Street, confirmed the demise of Broad Street Entertainments, a firm set up to operate the club’s licence.
But Mr Reddy said he was personally owed £80,000 by Broad Street Entertainments, placed into liquidation by Walsall-based insolvency specialists Griffin and King.
“The company was only set up with a licence to operate under the name of the Rocket Club. It was set up as a subsidiary and had no assets.
“It didn’t seem to trade very well and we were running up debts. It only operated for 15 to 18 months.
“This is no more than just tidying up a mess – it is just clearing the balance sheet up.”
Mr Reddy said a separate company, Berkeley Leisure, was now operating the lap dancing venue.
“It’s business as usual at the Rocket Club. It is trading profitably and there have been no redundancies.
“The Rocket Club has always traded reasonably well but some of this was perhaps bound up with the recession,” he added.
Amelia Fearn, insolvency case manager at Griffin and King, said: “I can confirm that Tim Corfield of Griffin and King has been appointed liquidator of Broad Street Entertainments. The company has ceased trading – a creditor appointed the liquidator.”
She declined to name the creditor.
Former Rocket Club boss Allan Sartori, who left the lap-dancing venue earlier this year after nearly ten years, said: “I was a director of Broad Street Entertainments for two years until January this year.
“I resigned as a director because I didn’t like the way Mr Reddy was trying to run the company. In March of this year I walked away.”
In August 2001, 70 creditors of the former business at the Broad Street venue, jazz bar Ronnie Scott’s, were left out of pocket following its £1.6 million collapse. Creditors included traders and the Inland Revenue.