Eclectic Bars, the late-night division of the Luke Johnson-backed Brighton Pier Group, has secured £1.8m, via the Government’s Coronavirus Business Interruptions Loan Scheme (CBILS),

The business has also extended its revolving credit facility of £1.75m to support the working capital requirements of the bars.

Eclectic’s banks have waived all existing covenant testing to the end of Sep 2021 and replaced it with a new minimum liquidity test that is triggered when the group’s cash resources fall below £1.75m

The company said it was working with landlords to reduce the cash impact of the March and June rent periods.

Meanwhile, with only two out of the division’s 12 predominantly late-night bars open, a redundancy process was confirmed.

“Considerable uncertainty remains as to how or when Eclectic Bar group’s remaining 10 bar sites will be able to reopen,” a statement said.

“Management have taken the difficult decision that it can no longer continue to keep large numbers of staff on furlough without the prospect of future work.”

On 14 August, the business started serving notice on all non-essential staff, with most redundancies to be completed by the end of September 2020.

The update was contained in a financial report for the year to 30 June 2019, where the business reported a loss after tax of £599,000.

Revenue was £12.73m, while EBITDA was £0.7m.