Loungers, the privately-owned group led by Alex Reilley, has opened its second site under its Cosy Club concept, in Bath. Located at the heart of Bath’s new SouthGate shopping scheme the latest Cosy Club comprises of 5,200sq ft of space split between a small ground floor entrance, 4,200sq ft 1st floor trading area and an 800sq ft first floor balcony. The group, which also operates the Lounge concept, opened its first Cosy club in Taunton last September. The brand was developed to go into market towns and to appeal to a more female audience. The Bath site, which was developed at a cost of £535,000, is Loungers’ first foray into a prime shopping centre pitch, however Reilley doesn’t see this as a change of direction in terms of site selection. “The Bath site is extremely unique and due to its first floor position was considered far too challenging by a number of operators who viewed the site”, Reilley said. “We jumped at the opportunity because we really loved the building and felt we could really make the space work”. “Because of its challenges it also made it an extremely affordable proposition in comparison to if we’d been at ground floor and we’re confident we can keep rent as a percentage to revenue down to less than 7%, particularly as we believe the site has the potential to deliver circa £1.5m of annual sales”. “We will continue to seek out interesting buildings and quirky space as the Cosy Club concept was designed to work in these kind of spaces. If that means interesting space within other shopping centre opportunities then so be it but our next 2 Cosy Club sites are located in a former postal sorting office depot (Stamford) and a Grade II-Listed former hospital wing (Exeter) for example”. To coincide with the Bath launch the Loungers management team have tweaked the concept to allow for reservations, provide full dining table service & to have more clearly demarked areas for dining and for drinking. The company, which currently operates 18 sites in total, intends to add a further seven sites by the end of April 2012 and is pushing on with rolling out both its Lounge and the Cosy Club concepts. It will open its latest Lounge site, the Santo Lounge, in Shirley, Southampton, in early August. Reilley told M&C Report last month that the group had two additional Lounge sites lined up in Bournemouth as well as another Lounge site in Birmingham. The group is also thought to be looking at opening its first Cosy Club site in Cardiff. The company saw turnover for the year to 30 April climb to £10.93m, while unit EBITDA was up from £1.46m to £2.46m and underlying EBITDA increased 88% to £1.64m. Reilley revealed a “marked increase” in recent interest from private equity firms although he was quick to dismiss the prospect of an imminent deal. Insight Retail Consulting acted on behalf of Loungers on the Bath deal.