The bar operator has secured a new £14m banking agreement with HSBC that replaces existing debt facilities with Santander and includes a separate £5m facility that will support investment in a number of new sites.
The Leeds-based company, which runs 18 bars and restaurants in the North of England, says it has already secured sites in key target cities, which it expects to open later this year. These follow on from venues it opened at the end of last year - Manahatta cocktail bar in Birmingham and a BOX sports bar and lounge in Deansgate, Manchester.
“We’re delighted to have successfully concluded this process – it is clearly a significant endorsement for Arc Inspirations and for the wider hospitality sector,” says finance director Tim Knockton.
“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 new banking arrangements and latest property pipeline developments follow an encouraging period of trading for the group in the second half of 2021. From mid-July to mid-December, Arc saw sales increase 42% against the same trading period in 2019, prior to the pandemic.
The group says it expects to produce a record performance in terms of both profit and sales for its full financial year to 31 March 2022.
“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,” says co-founder and CEO Martin Wolstencroft.
“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.”