Nightclub operator, Luminar Leisure, is to spend more money on refurbishing its sites, after admitting that 'an anticipated seasonal upturn in trading' had failed to materialise.

The company, which owns around 300 clubs, said customers had been staying away from its older units, impacting like for like sales which were down 4.2 per cent for the five weeks to 5 January. It also expected full year margins to be affected.

Chief executive, Stephen Thomas, said that trading had also suffered from the sustained price war in the crowded high street bar market. In response, Thomas has cut expenditure for the next year by £20m and will reduce the development plan.

Refurbishment spend on older sites will increase to £30m, while underperforming sites that fail to meet the company's criteria, will be earmarked for disposal. Thomas said he would focus more heavily on his stronger brands such as Chicago Rock Café, Jumpin Jaks, Liquid and Oceana.