Arc Inspirations, the acclaimed bar-restaurant operator of fast-growing brands Banyan Bar & Kitchen, The Box and Manahatta, has announced a new senior debt deal with its banking partner Santander to support an accelerated expansion strategy.
The group, led by CEO Martin Wolstencroft, has agreed a new facility with Santander that will double existing funding to almost £7m, enabling the group to expand its current portfolio of 18 bars.
The new agreement comes as Arc prepares to embark on a period of significant growth. The new facilities together with cashflow will fund forthcoming sites in Leeds and Manchester: the company is opening a Box premium entertainment bar in Leeds city centre next month; a Manahatta cocktail bar on Deansgate, Manchester, in October, and a Banyan bar-restaurant in Spinningfields, Manchester, also in October 2018. It addition, Arc has in place a strong pipeline of sites for openings in 2019 and beyond.
Finance Director Andy Whelan said, “We have in the past four years of working with Santander developed a very good relationship so are delighted to have reached this new agreement, after a highly competitive process.
“That we were able to secure this new and expanded funding at a time when some hospitality businesses are reporting both difficult trading and a challenging funding environment, speaks to the clearly differentiated position of Arc Inspirations and our vision for the business, which Santander shares.”
Nick MacHugh, Relationship Director at Santander, added, “Arc Inspirations is a business we know well and clearly continues to perform strongly in its chosen markets. Martin, Andy and the management team continue to deliver outstanding results thanks to a mix of strong and clearly defined brands, and an unwavering commitment to delivering exceptional customer experiences.
'We look forward to continuing to build on our partnership with the business and are delighted to be able to support their exciting growth plans.”
Last month, the company revealed record financial results for its most recent year – another successful period of strong growth – with revenue increasing 8.6% from £22.2m to £24.2m. EBITDA rose 33% from £2.4m to £3.2m.