April 29, 2020
Consumer, Retail, E-commerce and Leisure
Capital raise / fund raise
GCA Altium advises Loungers on a capital raise to enable it to re-commence its rollout following lockdown
GCA Altium has assisted Loungers, a leading UK operator of cafés, bars and restaurants, on raising capital through an extension of its banking facilities and a placing of new ordinary shares, to enable it to emerge strongly from lockdown and re-commence its growth strategy when the situation allows.
Until the Covid-19 restrictions required their closure, Loungers operated 167 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands. The company, advised by GCA Altium, successfully completed its IPO in April 2019 with a clear organic growth strategy driven by the targeted roll-out of 25 new Lounge and Cosy Club sites per annum and an ongoing focus on operational efficiency to drive further sales and margin improvements across the business. Loungers has consistently outperformed the wider UK hospitality sector over the past three years.
The lockdown in the UK has forced Loungers to temporarily close its sites, suspend its roll-out and materially reduce its cost base and cash outflow. The company has had to raise the additional capital, totalling GBP 23.3m, to cover its costs during lockdown and to position it to re-commence its roll-out and growth strategy once the lockdown eases and its sites can reopen.
GCA Altium has been retained as Loungers’ exclusive financial and nominated adviser since its IPO.