Bristol firm Loungers agrees sale to US investors

A café and restaurant chain that has hundreds of venues across the UK is to be sold to US investors for £338m, subject to the approval of shareholders.

Bristol success story Loungers, which runs both Lounge and Cosy Club cafes, has agreed a deal with private equity firm Fortress Investment Group.

Started by three friends in Bedminster, Loungers now operates 280 sites including in Stroud, Chippenham and Street.

Loungers chairman and co-founder Alex Reilley said the group had “come a long way" since it first opened in 2002.

The chain was founded by Mr Reilly and friends David Reid and Jake Bishop, who started the multi-million pound operation with just £10,000 at a former opticians on North Street.

“We are more ambitious than ever and we see Fortress as being an ideal partner to help us take Loungers into the next phase of its growth journey," Mr Reilly said.

The deal values the entire share capital of Loungers at about £338.3m, the firms said.

Fortress says it thinks Loungers has a “strong and differentiated position”, having grown its locations and sales in recent years “in spite of the recent challenges faced by the wider hospitality sector”.

Fortress also acquired Curzon cinemas in the UK earlier this month for an undisclosed sum.

The group’s managing director, Domnall Tait, said: “This growth, and management’s continued commitment to the business, give us confidence in the company’s growth potential and in the opportunity to increase value.”

Loungers needs the approval of its shareholders for the acquisition to go ahead.

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