Loungers posts 33% revenue drop

Loungers, the owner of Lounge and Cosy Club, has reported that revenue fell by a third for the 24 weeks ended 4 October, when compared to the same period last year.

The group claimed that the drop in revenue of £26.3m to £53.5m was a direct result of the national lockdown to 4 July. 

Despite sales growing by 25.1% between 4 July and 4 October, the company reported an adjusted EBITDA of £13.2m – down 8.8% from the same period of 2019.

Nick Collins, CEO at Loungers, acknowledged that the previous six months were “challenging”, but was keen to look onto the next phase for the business.

He said: “As we dare to look beyond Covid-19, Lounge and Cosy Club have never seemed more relevant, and we approach 2021 with enthusiasm and optimism. 

“Our strong balance sheet will enable us to get back to doing what we do best, opening 25 sites a year, creating over 500 jobs a year, investing in high streets across the UK and looking after our customers and teams.”

Alongside the financial results, the company announced the appointment of Eva Bugler as COO.

Bugler will assume her role on 14 December, in face of current Cocid-19 restrictions that Collins believes are “bewildering” and “unfair”.