£14m funding package to fuel growth at hospitality firm
Leeds-based premium bar operator, Arc Inspirations, has signed off on a new £14m banking agreement with HSBC.
The arrangement will replace the company’s existing debt facilities with Santander and includes a separate £5m facility to underpin the group’s expansion and growth.
Tim Knockton, chief financial officer at the company, said: “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 £5m growth element of new banking facility will support investment in a number of new sites for Arc.
As the operator of bar concepts Banyan, BOX and Manahatta, the business says it is actively looking to grow its footprint in prime locations in key cities, predominantly in the Midlands and the North.
The group 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.
Further to these openings, the group has also secured two new sites in key target cities, which it expects to open later this year.
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.”
The new banking arrangements and latest property pipeline developments follow an encouraging period of trading for the group in the second half of 2021.
From mid-July to mid-December, Arc says it delivered sales up 42% versus the same trading period in 2019, prior to the pandemic.
The strong return to trading, post-restrictions, included a record sales week in August for the group, when it achieved sales of more than £1m across its 18 venues.
Arc 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.”
