Loungers, the British café-bar and restaurant chain and owner of the Cosy Club, Lounge and Brightside brands, is facing opposition from significant shareholders regarding its proposed £338m takeover by Fortress Investment Group.  

The offer, announced on 28 November 2024, stands at 310p per share, surpassing Loungers' highest-ever closing share price. 

Mark Slater of Slater Investments, holding a 10.4% stake in Loungers, expressed his intention to reject the offer to The Times via The Caterer stating: "It’s the wrong time to be trying to sell a very good business of this kind".  

Fund manager Downing, which has a 1.5% stake in Loungers, and Gresham House, with a near-4% stake, have come out to oppose the proposed deal, as reported by MSN. 

Dan Harlow from AXA Investment Managers also plans to vote against the deal. 

Canaccord Genuity Asset Management announced its support for the acquisition on 29 November.  With a 1.7% share in Loungers, its backing brings total shareholder support to 41.9%. 

Fortress previously invested in UK entities such as Punch Pubs & Co, Majestic Wines and Vagabond. 

Fortress managing director Domnall Tait stated: “Fortress is pleased to present this offer for Loungers, a company we believe holds a strong and differentiated position in its industry."  

Tait continued: “Loungers’ directors have delivered impressive increases in the number of locations, same-store sales and revenues over the past several years – in spite of the recent challenges faced by the wider hospitality sector. This growth, and management’s continued commitment to the business, give us confidence in the company’s growth potential and in the opportunity to increase value.”  

At the Casual Dining Show in September, Justin Carter, group managing director of Loungers, highlighted expansion plans for an additional 35 sites in 2025.

This expansion would take the company's portfolio beyond 300 locations.