Lender saves the day with £2.4m backing of pub group buyout

A £2.4M debt and equity deal, organised by secured lender TFG Capital, has enabled Enjoy Pubs, which has establishments in Yorkshire, to acquire Parity Bars, after another funder backed out last-minute.

Parity runs 20 bars, including student and sports establishments as well as restaurants and employs 530 people.

Plymouth-based Enjoy runs 18 pubs, including The Psalter in Sheffield, Parity in Grimsby and Abacus in Chesterfield.

The deal was arranged by James Mortimore of Doncaster and Leeds-based TFG Capital, with Ben Slack, corporate partner at Leeds law firm, Clarion, advising on the transaction.

Mr Mortimore said: “This was an unusual funding proposition with a tight deadline due to a high street funder backing out at the last minute.

“However, inherently, there was a strong business with good levels of security and a driven management team and we are delighted to have been able to help Adam complete the acquisition.

“We were able to step in quickly to help. Despite the legal complexities of the transaction, working alongside Clarion, we were able to complete the deal in just three weeks.”

TFG Capital was founded by financier James Mortimore last September with the aim of plugging the funding gap for businesses seeking expansion and opportunity capital, but which are unable to obtain bank support.

The firm, which has offices in Leeds and Doncaster, expects the majority of its transactions to be for loans to SMEs for amounts between £50,000 and £3m over terms up to two years.

Adam Taylor, director of Enjoy Pubs Ltd, said: “We saw a fantastic opportunity to acquire a number of leasehold bars throughout the UK, but needed to act quickly to secure the deal. TFG Capital was able to provide the flexibility we needed as well as working within tight timescales.”

Mr Mortimore added: “As SMEs continue to struggle to access mainstream finance, we are seeing a huge demand for funding as the economy continues to recover.”