Arc Inspirations secures £19m investment to fuel growth

Bar operator Arc Inspirations has confirmed plans to accelerate its growth after securing a £13m investment from BGF, a growth capital investor, for a minority stake in the business.  

It said the funding will give the business “substantial fire power” as it looks to double its footprint over the next few years by opening multiple bar sites in major UK cities. It is set to double its current portfolio of 18 venues and deliver at least four new sites per year over the next three-to-five years.  

It added that the move marks a new phase for the group, as it plans for an accelerated rollout of its three premium brands, Banyan Bar and Kitchen, BOX and Manahatta.  

The deal marks the first time Arc has introduced external investment to the group. Since CEO Martin Wolstencroft and co-founder Chris Ure launched the business in 1999, its expansion has been funded by the business and more recently through a renewed partnership with HSBC. 

Wolstencroft, Ure and managing director Anni Opong remain significant shareholders in the business following the investment. In addition, and as part of this process, non-executive director Steve Richards, CEO of Parkdean Resorts and chairman of UKHospitality, will continue supporting the executive leadership team as non-executive chair.

 CEO Martin Wolstencroft said: “We’re absolutely delighted to have secured this investment from BGF who are committed investors with a track record of supporting growth and success in the hospitality and leisure sector.  

“This funding will enable us to expand our business significantly, allowing us to take advantage of substantial market opportunities over the next few years, as we take our winning brands to more key cities across the UK.”   

He added: “This investment marks a new phase for our business and is a genuine landmark moment for us, in our 20-year-plus journey, from when Chris and I opened our first bar in Headingley, Leeds, to where we are now with a group of 18 leading businesses run by a team of outstanding operators.

“It’s a brilliant outcome and the reason we have been able to do it is down to our people. The determination and effort they have poured into the business every day, especially in the past year, has been exceptional and we’re really excited about the future and what is possible.”

Arc Inspirations operates a cluster model, running premium large-scale bar sites in close proximity to each other, under complementary brands in key towns and cities in the Midlands and the North. It currently employs 1,000 people and recently posted “record” annual sales in excess of £40m.