London Cocktail Club owner Nightcap has bought The Piano Works in its latest bid for expansion, but warned that trading in 2024 had been “far softer” than expected.
The AIM-listed bar operator will pay a total consideration of £200,000 for The Piano Works. The firm said it raised £1m through a share subscription to provide working capital and funds for the acquisition.
The Piano Works was launched in 2015 in a Victorian warehouse in Farringdon. It is a live music venue where artists perform an “audience curated playlist” alongside food and drinks.
Since November, the Piano Works has also run a residency at a Covent Garden site owned by Nightcap. This has resulted in a “significant uplift” in revenue compared to the board’s forecasts, Nightcap said.
“Nightcap intends The Piano Works to become a permanent fixture at the Covent Garden site and for The Piano Works concept to be the rolled out along with the other successful brands in the Nightcap portfolio,” the company said.
“After the very successful residency in our Barrio bar in Covent Garden at Christmas we are delighted to be able to partner with them and provide the opportunities to bring this great entertainment concept to other cities across the UK,” Sarah Willingham, chief executive at Nightcap said.
Alan Lorrimer, founder of The Piano Works, said: “We now have the potential to expand The Piano Works and prove that customers across the country will love our immersive audience requested live music experience.”
The acquisition is Nightcap’s latest after it acquired the Dirty Martini chain back in June.
Nightcap also issued a trading update for the 2024 financial year, reporting that trade in the new year has been “far softer than the board expected”.
Rail strikes, the cost of living crisis and hefty increases to business rates have all hit the firm. Nightcap also flagged the forthcoming increase to the National Living Wage.
Although revenue will be in line with expectations, Nightcap said adjusted earnings before interest, taxation, depreciation and amortisation will be between £2m and £2.5m.