Bristol’s Loungers Chain Agrees to Sale with US Investors

The acquisition of a UK-wide café and restaurant group, operating hundreds of locations, by US investors has been agreed upon for £338 million, pending shareholder consent. Loungers, a successful Bristol-based company known for its Lounge and Cosy Club cafes, has finalized an agreement with the private equity firm Fortress Investment Group. The chain, which began with three friends in Bedminster, currently manages 280 establishments, encompassing locations such as Stroud, Chippenham, and Street. Alex Reilley, Loungers’ chairman and co-founder, remarked that the group had “come a long way” since its inception in 2002. Mr. Reilly, alongside David Reid and Jake Bishop, established the chain, initiating the multi-million pound enterprise with an initial investment of £10,000 at a former opticians on North Street. Mr. Reilly stated, “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.” According to the companies involved, the transaction values Loungers’ total share capital at approximately £338.3 million. Fortress expressed its view that Loungers holds a “strong and differentiated position,” noting its expansion in locations and sales during recent years “in spite of the recent challenges faced by the wider hospitality sector.” Earlier this month, Fortress also completed the acquisition of Curzon cinemas in the UK for an undisclosed amount. Domnall Tait, the group’s managing director, commented, “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.” The completion of the acquisition is contingent upon approval from Loungers’ shareholders.