Club loan totalling £190m supports Loungers acquisition
OakNorth has provided a £30m debt financing package to support Fortress Investment Group and Lion Capital’s acquisition of Bristol-based Loungers – part of a wider club loan with several other banks totalling £190m.
One of the UK’s fastest-growing all-day café-bar operators, Loungers currently operates over 290 sites across the UK under the Lounge, Cosy Club, and Brightside brands.
Under Fortress and Lion’s ownership, Loungers plans to continue its proven site rollout strategy, opening over 30 new sites a year to capture further market share in underserved UK locations.
Alex Reilley, executive chairman and co-founder of Loungers, said: “We’re hugely excited about what the future holds for Loungers. Having the backing of both Fortress and Lion Capital provides us with the firepower and strategic support to continue our ambitious expansion plans while staying true to the culture and values that have made Loungers so special.”
Stuart Blair, debt finance director at OakNorth, said: “Loungers is a best-in-class operator with a differentiated and highly scalable model. The business has shown impressive resilience through multiple macroeconomic cycles and continues to deliver outstanding site-level economics. The management team led by Nick and Alex is world-class which is why they’ve been able to deliver such strong results for decades. It’s been a pleasure to work alongside Fortress and Lion Capital – two highly experienced sponsors with a deep understanding of the hospitality sector – to support the next stage of Loungers’ growth journey.”
