A nationwide chain of cafés, bars and restaurants founded in Bristol on a shoestring £10,000 budget, is to be sold off to US investment firm for £366m. Loungers, which runs the Lounge, Cosy Club and Brightside brands, is to change hands in a deal with Fortress Investment Group which is looking to grow the Loungers empire.
It was announced today, Thursday, January 30, that shareholders in Loungers have voted in favour of an increased £366.6 million bid for the company from US firm Fortress Investment Group, backed by funding from Abu-Dhabi, after rejecting an earlier offer of £338m. Loungers chairman and co-founder Alex Reilley had urged shareholders to vote in favour of the deal, describing the improved off as “compelling”.
The US-based operation already owns Majestic Wines, Punch Pubs and Poundstretcher in the UK. Friends Alex Reilley, Jake Bishop and Dave Reid opened the very first Lounge in a former opticians in North Street, Bristol, in August 2002.
The first Cosy Club was opened in Taunton ten years later. In March 2017, the group opened its 100th venue in Mansfield, Nottinghamshire.
It currently operates more than 280 venues across the UK, including outlets in Bristol, in Exeter, Plymouth, Barnstaple, Newquay, Truro, Falmouth, St Ives, Newton Abbot, Paignton, Totnes and Babacombe.
When the current deal was tabled earlier this month, the firm said: “The directors consider that 2025 is likely to be a challenging year for British consumers, as retailers and leisure operators raise prices again to mitigate the rise in National Insurance contributions and the National Minimum Wage.”
Fortress previously said it thinks Loungers has a “strong and differentiated position”, having grown its locations and sales in recent years “in spite of the recent challenges faced by the wider hospitality sector”.
Under the terms of the revised offer, shareholders get 325p in cash for each scheme share, valuing the share capital at £354.4m with a total enterprise value of £366.6m.
Fortress managing director, Domnall Tait, said: “This increased offer for Loungers reflects our continued belief in the business and its management team, and we look forward to supporting them through the next stage of growth. Notwithstanding the recent challenges, Fortress remains a strong believer in the UK.”
In 2024, Loungers opened 35 new outlets. This year, 2025, Loungers has opened Blanco Lounge, in Bolton; Toledo Lounge, at the Merry Hill shopping centre in the West Midlands, and Calvero Lounge, in Tenterden, Kent. In February, the group will open the Argento Lounge, in Preston; the Manzano Lounge, in Rayleigh, Essex, and the Saludo Lounge, in Workington, Cumbria. Loungers also plans to open the Marinero Lounge, in Ipswich, and the Rivolo Lounge, in Norwich, later this year.