Nightcap secures £10m to expand

Drinks-led investment firm Nightcap is expanding after receiving a £10 million (US$12.1m) from UK bank HSBC.

Nightcap was founded in 2020 by former Dragons’ Den investor Sarah Willingham and Michael Toxvaerd, and is owner of The Cocktail Club, Adventure Bar Group, and Barrio Familia.

The £10m investment will be used to ‘consolidate existing debt facilities’ worth £5.5m (US$6.6m) across 34 sites, three of which are in the final stages of refurbishment.

Willingham commented: “We have a clear vision and strategy to help realise our ambition of becoming one of the UK’s leading hospitality brands.

“Working with HSBC UK to refinance our existing debt and provide further liquidity to deliver our site acquisition strategy has been an important next step for us as we expand.

“We’re proud of the strides we have made to grow in a sector that is continuing to bounce back from the pandemic. As the cost of living and a labour shortage coincide, our role in providing a fantastic experience to our guests and colleagues is heightened.

“That’s why we’ve also recently launched our Nightcap Bar Academy, to make sure our employees learn skills for life and build confidence, all while having fun through the process.”

For the remainder of 2022, Nightcap will complete the renovation of three sites and use the remaining £4.5m (US$5.4m) to pursue its expansion plans.

Nightcap hopes to grow its footprint in ‘prime locations’, both in London and in key cities across the UK.

The firm said it currently has another 22 premises under offer or in legal negotiations.

Alex Brown, corporate relationship director at HSBC UK, added: “We’re proud to be supporting a rapidly growing hospitality company that will provide jobs to communities within cities across the country and support skills development within the hospitality industry.”

Earlier this month, the company revealed it finished its financial year with double-digit sales growth during its fourth quarter.