No Saints, the leisure group run by ex-Luminar boss Stephen Thomas, has reportedly launched a new round of fundraising to raise a further £2.1m toward its continuing expansion.
According to The Times, the company, which has already raised around £5.2m through two previous fundraising processes, is seeking to raise the £2.1m via Hotbed, the Milton Keynes-based private equity syndicate that uses the finances of high net-worth individuals.
It is thought that the new funding will partly help with the expansion of new brand Wonder. As revealed by M&C Report last month, the company, which opened its first site under cabaret concept Greene Room in Milton Keynes in May, is set to launch three varieties of the Wonder format – Wonder Lounge, Wonder Land and Wonder Years.
Wonder Lounge, a cocktail bar concept, will be launched in Banbury in July, with a further sites in Sevenoaks and Woking set to follow. Wonder Land is a nightclub concept, which will open its first site in Sutton. The four new sites were acquired from a number of different, unnamed parties.
Finally, the company is currently searching for a first site for the Wonder Years concept, which is billed as a retro disco bar, with Maidenhead mooted as a possible first location.
Thomas told M&C Report that he hoped to open up to 10 sites under the new Wonder formats before the end of the year.
The Wonder brand joins the Greene Room, Chicago Pizza Pie Factory, Jam House and Arena in No Saints’ portfolio of already open and planned formats.
Thomas hopes to open a second Greene Room, probably in Cambridge, before the end of the year and has secured a site in Bristol for his first Chicago Pizza Pie Factory.
The company has recently taken on a former Barracuda Bar in Derby that is currently being operated “as a straightforward bar operation”. It is believed to have doubled sales at the venue in the two weeks since it re-opened.
Thomas has also secured a former Luminar nightclub in Cheltenham, plans for which have yet to be disclosed.
Russell Pope, Chief Investment Officer at Hotbed, said “Stephen Thomas has fantastic experience in the leisure industry. That experience is already paying dividends in ensuring that No Saints can acquire venues at particularly favourable rents because landlords have the confidence that they will be long-term, stable tenants.”
“As a result, No Saints is making good progress in its roll-out. Existing investors have been keen to take advantage of the rights issue, and we are pleased to be able to offer more investor members the opportunity to get involved in an attractive sector in which, traditionally, good concepts often get snapped up quickly by the major players.”
Thomas said “The traditional nightlife scene is growing up. Mass drinking venues may be suffering but there is still unmet demand, especially amongst a slightly older age group, for nights out that offer a sense of occasion and fill the gap that exists outside London between bar and nightclub.”
“While other operators are tied up by existing leases and still repairing the financial damage caused by the recession, No Saints is able to move quickly to find the best venues for this audience at depressed prices and invest in getting the right mix of entertainment, food and drink to draw them in.”
The group last year revealed plans to run 75 outlets and have a £100m turnover within five years.
