Re-opening Update

RNS Number : 1481T

Loungers PLC

16 July 2020

 

Loungers Plc

("Loungers" or "the Company")

Re-opening Update

Loungers has successfully re-opened 75 Lounges and 19 Cosy Clubs (from a total estate of 138 Lounges and 29 Cosy Clubs), following the relaxation of the Government imposed closure period due to Covid-19.  We have been very encouraged by the reception from both our teams and our customers. The steps we have taken to ensure everyone's safety have been well-received and have not prevented us delivering our usual exceptionally high standards of hospitality and atmosphere.  As a result of the confidence we have gained from the trading at our re-opened sites to date, we have decided to accelerate our re-opening programme and will have the full estate re-opened by 5 August.

We have decided not to re-open two sites.  Banco Lounge in Bristol is one of our earliest sites and a combination of its small size and the additional costs of doing business mean that it no longer meets our returns criteria.  Its lease expires in March 2021 and will not be renewed.  We have also closed Allegro Lounge which hasn't performed as we had hoped since opening in 2018. Whilst we are always willing to give each site time to mature, Northfield has proven to be the wrong location for a Lounge and we will ensure we learn from that.  We are not considering any other sites for closure.

Therefore, from 5 August we will be operating from 165 sites, comprising 136 Lounges and 29 Cosy Clubs.  We look forward to getting the new-site roll-out back on track in due course.

We plan to participate in the Government's 'Eat out to help out' campaign and welcome the crucial support our sector has received in the form of the VAT reduction (which applies to 65% of our sales) and the Job Retention Scheme Bonus.

Nick Collins, Chief Executive of Loungers, said:

"It remains our view that Loungers is well placed coming out of lockdown and we are optimistic with regards to future trading and the continued planned growth of both our Lounge and Cosy Club brands.  Whilst in the short term our roll out programme will be considerably more conservative, we are excited to be opening our 30^th Cosy Club in Brindley Place, Birmingham on 10 August.  We welcome the further sector support announced by the Government last week which is timely and will assist us in re-building momentum over the weeks and months ahead."

16 July 2020

For further information please contact:

Loungers plc Nick Collins, Chief Executive Officer Gregor Grant, Chief Financial Officer	Via Instinctif Partners
GCA Altium Limited (Financial Adviser and NOMAD) Sam Fuller / Katherine Hobbs / Tim Richardson	Tel: [phone]
Liberum Capital Limited (Joint Broker) Andrew Godber / John Fishley	Tel: [phone]
Peel Hunt LLP (Joint Broker) Dan Webster / George Sellar	Tel:  [phone]
Instinctif Partners (Financial Public Relations) Justine Warren Matthew Smallwood	Tel: [phone] or 020 7457 2005

 

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