Loungers bar chain said it will not reopen two sites in Bristol and Birmingham due to the low performance and additional costs to operate within new social distancing guidelines.
It will not renew the lease for Banco Lounge in Bristol, one of the earlier sites in its portfolio, due to the small size and high operational cost. The lease is set to expire in March 2021.
Loungers has also closed Allegro Lounge in Northfield, Birmingham. It said the bar had performed badly due to the location, which is not suited to a lounge.
It has not considered any other closures. The announcement follows plans to expand the bar chain last month, expecting new property opportunities as consumers spend more time in suburban locations.
Loungers now has 136 lounges and 29 cosy clubs, around half of which are currently open, with all sites to be up and running by 5 August. It will also open a new cosy club in Brindley Place in Birmingham on 10 August.
The group said it plans to participate in the government’s “eat out to help out” campaign.
Chief executive Nick Collins said: “It remains our view that Loungers is well placed coming out of lockdown and we are optimistic with regards to future trading and the continued planned growth of both our lounge and cosy club brands.”
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