In its interim update, the governance of London-listed Rank Group Plc has revealed that its Luda Bingo project has failed to live up to management expectations.
Updating investors, Rank governance details that the three Luda venues launched in Walsall, Weston-super-Mare and Leeds, failed to gain traction with bingo consumers.
Launched in July 2017, the Luda venues aimed to attract younger audiences to new bingo/gaming concepts, within newly designed leisure premises.
“Luda’s new gaming format embraces bingo’s social and community context and places it in a more accessible and contemporary environment.
It will bring a new customer offer and format to the gaming industry, which reflects the needs and demands of today’s busy consumer lifestyles” detailed Rank at the time of Luda’s launch.
Nevertheless, tough retail/leisure conditions recorded during 2017/18 trading saw Luda venues impaired, resulting in Rank incurring circa £2.1 million in exceptional costs.
The Luda venues are set to reviewed by Rank’s newly appointed business transformation team, led by former McKinsey executive Jim Marsh.
New Rank Group CEO, John O’Reilly has declared to investors that the firm’s executive team is committed to implementing the firm corporate recovery plan, following a year of declines across all core Rank verticals.