Fat Cat Cafe Bars is to open the third site in its bluu chain, in Liverpool's The Tea Factory development.

Matt Saunders, the company's managing director, said: "We have known for a while that Liverpool would be the perfect city for us to have a bluu and now that the Capital of Culture bid has been decided it looks like we have been proved right."

The company has two other sites in London and Nottingham and is planning to open eight more over the next three and a half years.

The company is looking for sites in Manchester, Leeds, Glasgow, Cardiff, Bristol, Birmingham, Newcastle and Central London.