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Restaurant chain behind Velo Lounge and Cosy Club in Bath sell majority stake for £137 million

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Written by: Tim MacFarlan | Posted 05 January 2017 6:00

Restaurant chain behind Velo Lounge and Cosy Club in Bath sell majority stake for £137 million

The restaurant chain behind the Velo Lounge and Cosy Club in Bath has sold a majority stake for £137 million.

Loungers was founded in Bristol in 2002 by trio of longstanding friends Alex Reilley, Jake Bishop and Dave Reid.

Lion Capital LLP has bought the majority stake in the chain behind the Lounge and Cosy Club brands.

Alex and Jake are planning on remaining at the heart of the Loungers business, which runs the Velo Lounge in Moorland Road, Oldfield Park and the Cosy Club in SouthGate.

There are six of the family-friendly café-bars in Bristol and 90 in total across the country.

A former bank is about to reopen as a cafe and bar

Lion has bought the majority stake in Loungers through the acquisition of Piper's stake in the company and a portion of the founders' stake.

The idea behind the business was to provide customers with a 'third space' between work and home to meet, chat, eat and drink – a more attractive alternative to pubs and coffee bars.

Piper invested in Loungers in April 2012 when the business comprised 20 Lounges and three Cosy Club sites across the UK.

Over the past four years, the company has more than quadrupled the number of sites to 94, opening 20 sites a year since 2014 and creating employment for almost 2,000 people.

The business is planning to open its 100th site by April 2017 and has a further 20 in the pipeline for the following year.

The team behind the business will continue their involvement for the next stage of its growth. Alex Reilley will stay on as chairman of the group.

 

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