Eclectic plans stock market flotation to boost growth

Lola Lo Investment company Avanti Capital is set to float Eclectic Bar Group on the stock market to raise funds for its future growth.

It plans to sell its majority stake in the bar operator alongside the issuing of about £10 million new shares through the UK’s Alternative Investment Market (AIM).

Eclectic Bar Group operates 19 sites across the UK including bars and clubs operating as Lola Lo (pictured), Sakura, Po Na Na and Fez Club as well as Embargo 59 in Chelsea, London, and Madame Geisha and Coalition in Brighton.

This month, the company took over Coyote Wild bar in Derby which it plans to convert to its Polynesian-themed Lola Lo brand in early 2014.

The listed group will continue to be run by the existing management team, led by chief executive Reuben Harley, plus a new director, Clive Watson, former chief executive of Capital Pub Company and founder of The City Pub Company.

Harley said the flotation would accelerate their growth strategy. “I see a great opportunity to grow this business both organically and via selective new site acquisitions.

“The bar market remains highly fragmented and, with our total focus on attracting a premium customer to the highest-quality bar in the locations in which we operate, we are well positioned to take advantage of the market.

“The potential of our brands allows for growth both from utilising different brands in areas in which we currently operate as well as new sites in our target towns and cities.”

The business was founded 10 years ago as Barvest, backed by Avanti Capital, when it was formed out of the sites of collapsed operator Po Na Na Group.

Until October 20, Eclectic Bar Group ran 33 venues owned by The Orchid Group, including The Living Room bars, under a management contract that ended after The Living Room was sold to Stonegate Pub Company.

Click here to read our October 24 report on Eclectic’s latest results.

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