Arc Inspirations secures £14m refinancing

Bar operator Arc Inspirations has concluded a £14m refinancing agreement with HSBC, replacing its existing debt facilities with Santander and including a separate £5m facility to underpin the group's expansion.

Tim Knockton, chief financial officer, said: "We're delighted to have successfully concluded this process – it is clearly a significant endorsement for Arc Inspirations and for the wider hospitality sector. From early in the process, we were extremely encouraged by the number of banks that showed interest in supporting the refinancing and are very pleased to be partnering with HSBC, who are long-term supporters of the sector."

The £5m will support investment in several new sites for Arc, which operates brands including Banyan, Box and Manahatta and is looking to grow its footprint in prime locations in key cities, predominantly in the Midlands and the North.

The group unveiled two new flagship sites in the fourth quarter of 2021, opening a Manahatta cocktail bar in Birmingham, followed by a Box sports bar and lounge in Manchester.

Arc Inspirations has already secured two new sites in key target cities, which it expects to open later this year.

The new banking partnership ends the group's relationship with Santander.

Knockton added: "Santander have been supportive partners to our business for a number of years, including through an extraordinary period over the last two years. We're very grateful for their support and wish them well."

From mid-July to mid-December, the group saw sales rise 42% versus the same trading period in 2019, including a record sales week in August, when it achieved sales of more than £1m across its 18 venues, propelled by brunches, events and record pre-booked sales.

Arc said it expected a record performance in terms of both profit and sales for its full financial year to 31 March 2022.

Co-founder and chief executive Martin Wolstencroft added: "The business is in an excellent position to capitalise on forthcoming growth opportunities, and we are very pleased to be entering this partnership with HSBC.

"We're delighted with our recent openings in Birmingham and Manchester, which are further testament to the strength of our people, operations and leading brands, and are excited about the opportunities we have in front of us."