Arc Inspirations secures £14m banking agreement
It comes as the operator of bar concepts Banyan, BOX and Manahatta is actively looking to grow its footprint in prime locations in key cities, predominantly in the Midlands and the North
Premium bar operator Arc Inspirations has secured a new £14m banking agreement with HSBC, which includes a separate £5m facility to help boost the group’s ongoing expansion and growth.
The £5m will in particular support investment in a number of new sites for Arc. It comes as the operator of bar concepts Banyan, BOX and Manahatta is actively looking to grow its footprint in prime locations in key cities, predominantly in the Midlands and the North.
The group previously unveiled two new flagship sites in the fourth quarter of 2021, opening a Manahatta premium cocktail bar in Temple Street Birmingham, followed by a BOX premium sports bar and lounge in Deansgate, Manchester.
In addition to these openings, it has also secured two new sites in key target cities, which it expects to open later this year.
The new banking arrangements and latest property pipeline developments follow what it calls an “encouraging period” of trading for the group in the second half of 2021. From mid-July to mid-December, its sales were up 42% against the same trading period in 2019, before the pandemic.
It then welcomed an “exceptionally strong” return to trading post-restrictions, which included a record sales week in August, when it achieved sales of more than £1m across its 18 venues, boosted by brunches, events and record pre-booked sales.
It now expects to produce a “record” performance in terms of both profit and sales for its full financial year to 31 March 2022.
Tim Knockton, CFO, said: “We’re delighted to have successfully concluded this process – it is clearly a significant endorsement for Arc Inspirations and for the wider hospitality sector.
“From early in the process, we were extremely encouraged by the number of banks that showed interest in supporting the refinancing and are very pleased to be partnering with HSBC, who are long-term supporters of the sector.”
The new banking partnership will replace existing debt facilities with Santander.
Knockton added: “Santander have been supportive partners to our business for a number of years, including through an extraordinary period over the last two years. We’re very grateful for their support and wish them well.”
Co-founder and CEO, Martin Wolstencroft, said: “The business is in an excellent position to capitalise on forthcoming growth opportunities, and we are very pleased to be entering this partnership with HSBC. We’re delighted with our recent openings in Birmingham and Manchester, which are further testament to the strength of our people, operations and leading brands, and are excited about the opportunities we have in front of us.”
