Financial reports say the firm had been experiencing trading difficulties
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Four West Midlands nightclubs run by the UK's second largest entertainment operators have called in receivers.
Zanzibar nightclubs in Kidderminster, Stafford, Birmingham and The Tower Ballroom, Edgbaston are part of a group facing debts totalling £18m.
The clubs are all owned by Springwood Leisure and the business has been placed in administrative receivership at the request of the directors.
Bosses blame a downturn in trade made worse by last summer's hot weather.
There had also been problems with selling a substantial number of properties, meaning it could not invest in redevelopment.
Flagship club
The Kidderminster Zanzibar opened after a £1m refurbishment of the former Knights club, in Castle Road, in 2000.
The 1,800 capacity Stafford club opened in 2000 in the old Colosseum club, and has played host to a number of celebrities including actor Nicky Bailey who played doctor Anthony Truman in Eastenders, the Cheeky Girls and music legends Chas and Dave.
The Birmingham city centre Zanzibar is the chain's flagship club and with a capacity of 3,500 is one of the largest venues in Europe.
The Tower in Edgbaston is a prominent nightclub, ballroom and function complex, regularly hosting boxing matches.
Leicester-based Springwood Leisure also owns the McCluskeys chain, mainly in the south of England, and a string of other bars and clubs.
Faye Davies, spokeswoman for receivers Ernst & Young, said it was hoped to sell the business as a going concern.