The company, founded by Nick Campbell in 2012, said the move to slim down its estate would put the company in a stronger financial position moving forward.
Simmons, which has been backed by Lonsdale Capital Partners since 2018, has also secured additional funding to support future expansion.
Commenting on the decision, Campbell said: “Simmons Bars has completed a strategic restructuring process, supported by Lonsdale Capital Partners, designed to streamline its portfolio, strengthen its financial position, and lay the foundation for continued growth.
“As part of the process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest-performing venues. Alongside this, we’ve secured additional investment to support future expansion and operational improvements across the estate.
Exploring opportunities
“The business continues to trade as normal, with all of our retained sites operating without interruption. As always, we remain committed to delivering the unique, value-driven, high-energy customer experience we’re known for and look forward to a positive end to 2025.
“We plan to continue exploring opportunities for expansion in the market, including potential sites in key UK cities outside of London.”
The bar group, owned by Nightlight Leisure Ltd, operates a number of sites across London and one in Manchester, offering cocktails, brunches, and karaoke.
Speaking in May 2023, CEO Campbell said the chain was planning to open its 26th location in Hoxton, with four further sites in legals at the time. The estate currently stands at 21 locations.
Value proposition
In its most recent trading update filed at Companies House, the chain reported a marginal increase in turnover from £28m in FY23 to £28.6m in the year to 31 March 2024.
Simmons credited its value proposition for its ability to maintain trading levels despite headwinds.
However, the bar group said its younger 20-30-year-old customer base had been disproportionately impacted by cost-of-living pressures, while persistent inflation had put pressure on the company’s cost base.
The group’s first site outside London, in Manchester’s Deansgate, was trading “ahead of expectations and budget” and headwinds showed “signs of softening,” according to the accounts.
