Bar and café owner Loungers has extended a revolving credit facility and waived covenants with two of its banks, as its chief executive says the company has lined up “a fantastic pipeline of new sites in what is undoubtedly a tenant-friendly environment”.
The company said in a stock exchange statement that a £15m credit line with Santander and Bank of Ireland, due to expire in October, has been extended by 12 months, with covenant tests due in April waived and subsequent tests “reset”. The company now has total credit facilities of £25m.
Loungers will open 47 of its sites in England sites on 12 April for takeaways and external trading, and expects all to be open by mid-May, with sites in Wales open later that month. It also aims to open new sites in Wolverhampton, Stourbridge, Welwyn Garden City and St Ives by the end of May, bringing its estate to 172 sites.
Despite some closures, Loungers has continued to map out expansion plans during the pandemic, and chief executive Nick Collins said he hopes the company will return to opening 25 new sites a year over the coming year.
“We expect to trade well once the estate is fully reopened, particularly with our strong coastal presence, as we look forward to a summer of staycationing,” Collins said. “Planned new openings in Blackpool, Scarborough and Aberystwyth ahead of the summer holidays will reinforce this position.
“The most recent lockdown has given us a real opportunity to build a fantastic pipeline of new sites in what is undoubtedly a tenant-friendly environment. We will approach the coming months cautiously but are very keen to get back to opening 25 sites a year at the earliest opportunity with such excellent properties being presented to us.”
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