Arc Inspiration new finance deal signals “support for UK hospitality sector”

UK bar operator Arc Inspirations is set to expand its growth in the north of England after injecting around £5 million of extra capital as part of a refinance deal, which it said was “a ringing endorsement” for the premium bar sector.

The Leeds-based operator has signed the new finance deal with HSBC worth £14million, which it said includes a separate £5m to underpin the group’s expansion and growth.

The expansion in the Midlands and North of England has already kicked off with the opening of two new flagship sites at the end of 2021, a Manahatta premium cocktail bar in Temple Street Birmingham, and a BOX premium sports bar and lounge in Deansgate, Manchester.

Two further sites are set to open in key northern cities later this year.

Chief financial operator Tim Knockton said the deal was “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 group reported an uptick in trading in the second half of 2021, with sales from mid-July to mid-December, up 42% on the pre-pandemic level of 2019.  August saw a record sale week , with £1 million taken across 18 venues, marking an exceptionally strong return to trading, it said.

Co-founder and CEO Martin Wolstencroft, said the business was in “an excellent position to capitalise on forthcoming growth opportunities” and the recent openings in Birmingham and Manchester were “further testament to the strength of our people, operations and leading brands, and are excited about the opportunities we have in front of us.”