Loungers 'encouraged' by initial post-lockdown trading

In a brief trading update, the group, which operates 165 sites across England and Wales under the Lounge and Cosy Club brands, said like-for-like sales were down by just 1.7% on last year between 4 July and 2 August.

The group adds that it has now reopened almost all of its estate, with the exception of one Cosy Club site in Leicester, which is due to open this Friday (7 August).

Loungers said that whilst these are still early days, it is 'encouraged by the initial strength of its trading performance to date' and 'remains confident the group will emerge strongly from this period'. 

Having initiated a phased reopening on 4 July, the group subsequently said it was accelerating its plans​​ in a bid to have its full estate reopen by the beginning of August. 

It also announced plans to open a brand-new Cosy Club site in Birmingham on 10 August.

A new Lounge is also expected to open sometime in September.

Director Alex Reilley said at the time that the company is "legally committed" to open eight new sites and that beyond that it wanted to return to the expansion trail as quickly as possible.

He said: "By the first quarter of next year we hope to be back up levels of expansion pre Covid.

"Our view has always been you've got to be in it to win it. We want to get back up and trading."

The company also confirmed at the time that it had decided to permanently close two sites – the Banco Lounge in Bristol and the Allegro Lounge in Northfield, with the latter not meeting expectations because of being in the wrong location for the brand.

“It remains our view that Loungers is well placed coming out of lockdown and we are optimistic with regards to future trading and the continued planned growth of both our Lounge and Cosy Club brands,” said Nick Collins, Loungers CEO.