The loan has been secured by Lion Capital and Fortress Investment Group to buy the chain of all-day cafe bar operators.

Founded in 2002, Loungers operates over 290 sites across the UK and employs 9,000 staff.

Under Lion and Fortress, Loungers will expand further and open over 30 new sites a year in “underserved” UK locations.

OakNorth’s capital is part of a wider club loan with several other banks, totalling £190m.

"Loungers is a best-in-class operator with a differentiated and highly scalable model,” said Stuart Blair, debt finance director at OakNorth.

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“The business has shown impressive resilience through multiple macroeconomic cycles and continues to deliver outstanding site-level economics.

“It’s been a pleasure to work alongside Fortress and Lion Capital – two highly experienced sponsors with a deep understanding of the hospitality sector – to support the next stage of Loungers’ growth journey."

Alex Reilley, executive chairman and co-founder at Loungers, added: “Throughout this transaction, OakNorth has been an outstanding banking partner - responsive, commercial, and supportive at every step.

“They are long-term supporters of the hospitality sector and have a deep market understanding of the challenges and opportunities facing businesses like ours."