Arc Inspirations secures financial backing for expansion

By James Lawrence

Published: 31 January, 2022

Leading bar and restaurant operator Arc Inspirations has signed an agreement with HSBC to borrow £5m, allowing the company to fulfil its plans for expansion and growth.

Established in 1999, Arc Inspirations is a Leeds-based hospitality group currently running 18 bars and restaurants in the North of England. It is made up of three core brands: Banyan, Manahatta and BOX.

Operating venues in Leeds, York, Birmingham, Harrogate and Manchester, the group is targeting new sites in 2022.

Despite the considerable challenges of last year, the group unveiled two new flagship sites in the fourth quarter of 2021, opening a Manahatta premium cocktail bar in Temple Street Birmingham, followed by a BOX premium sports bar and lounge in Deansgate, Manchester.

Further to these openings, the group has also already secured two new sites in key target cities, which it expects to open later this year.

Tim Knockton, chief financial officer, commented: “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 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, the group delivered sales up 42% versus the same trading period in 2019, prior to the pandemic.

The exceptionally strong return to trading, post-restrictions, included a record sales week in August for the group, when it achieved sales of more than £1m across its 18 venues, propelled by brunches, events and record pre-booked sales.

“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,” said co-founder and CEO Martin Wolstencroft.

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