Eclectic, one of the leading operators of premium bars in the UK, has announced that Luke Johnson, the serial leisure entrepreneur, intends to subscribe for 3,000,000 new ordinary shares of 25 pence each in the capital of the Company at a price of 50 pence per Ordinary Share.
In conjunction with the Subscription by Luke Johnson, he has been appointed to the Board as Executive Chairman with immediate effect. Jim Fallon will remain with the business as a Non-executive Director.
The Self Invested Pension Plans of Reuben Harley, Eclectic’s Chief Executive Officer, and John Smith, Eclectic’s Chief Financial Officer, each intend to subscribe for 150,000 new Ordinary Shares at the Subscription Price. The Subscriptions will raise £1.65 million for the Company, and will provide additional working capital to fund the development of the Group’s business.
The Ordinary Shares to be issued under the Subscriptions to Luke Johnson will represent approximately 18.5 per cent. of the Company’s issued share capital as enlarged by the Subscriptions.
Luke Johnson
Luke Johnson has many years’ experience of guiding, developing and growing leisure businesses both in the public and private arenas. He has been involved in the hospitality industry for over twenty years, including as chairman of PizzaExpress Plc during the 1990s; co-founder and chairman of the Strada restaurant chain; and chairman of Giraffe restaurants for nine years until 2013. He is currently chairman of Patisserie Holdings plc, Gail’s bakeries (Bread Holdings Ltd) and Buffet Restaurants Limited.
Reuben Harley, Chief Executive Officer of Eclectic, commented:
“I am excited at the opportunity to work with Luke Johnson. We will continue to work hard on improving the core business, but with the additional skill set on the Board, and the net proceeds of the Subscription, we will be able to accelerate the Group’s plans and development as well as diversifying into a broader range of hospitality offers.”
Luke Johnson, newly appointed Executive Chairman of Eclectic, commented:
“There is a great business within Eclectic with much potential, including some great people and an attractive portfolio of sites. It has firm foundations and continues to be cash generative. I look forward to gaining a deeper understanding of the business over the coming months, and helping them to plan and execute a strategy for growth.”
About Eclectic Bar Group
Eclectic Bar Group is a leading operator of premium bars in the UK. Eclectic’s portfolio comprises venues located in major UK towns and cities, predominantly targeting a customer base of sophisticated students midweek and stylish over-21s and young professionals at weekends. The Company focuses on delivering added value for its customers, with premium product ranges, high-quality music and entertainment, and a commitment to high service levels and standards. The Eclectic Group trades across its estate under a variety of brands, including Embargo Republica, Dirty Blonde, Lowlander, Lola Lo, Sakura, Po Na Na, Fez Club and Coalition.
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