Exclusive – Ten Entertainment Group acquires Fairgame: Ten Entertainment Group, the Tenpin brand operator which is backed by US private equity firm Trive Capital, has acquired Fairgame, the competitive socialising concept from Richard Hilton, the founder of Gymbox, in a deal that is understood to value the business at circa £40m, Propel has learned. Fairgame, which Hilton co-founded with sector investor Paul Campbell, opened its second site in London, a 24,500 square-foot Fairgame at One New Change, earlier this summer. The concept made its debut in Canary Wharf in October 2022. That site welcomes about 330,000 guests a year and made an adjusted profit of £4.2m last year, having turned over £12m in revenue. Corporate guests represent about 40% of Fairgame’s business. The launch of the business was backed with £5m of growth capital from a combination of BGF and a consortium of private investors. Propel revealed last September that the business, which is backed by Business Growth Fund (BGF), was working with Tamweel Capital on its funding options following the “phenomenal success” of its maiden site. It subsequently completed a multi-million-pound growth capital raise as part of that. The new funding, with financing provided by HSBC, was used to launch the One New Change site, as well as push ahead with US expansion, with talks also underway for international franchising. In August, Hilton said he planned to secure further funding for US expansion. He said he hoped Fairgame would operate directly in big US cities such as New York and, potentially, Las Vegas, Chicago and Boston. It is thought that Tenpin will look to back Fairgame’s international ambitions, which would also mark an overseas debut for the Graham Blackwell-led business. Last February, US private equity firm Trive completed its circa £300m deal for Ten Entertainment Group. It saw Tenpin, which operates 55 venues, taken private after six years as a listed business. In March, Blackwell told Propel the group anticipates six new sites in 2025 and has a “robust pipeline for 2026 and beyond”. Ten Entertainment and Fairgame declined to comment. Tenpin Entertainment features in the Premium Club Turnover & Profits Blue Book, the latest edition of which features 1,182 companies. Its turnover of £135,332,000 is the 97th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

 

UKHospitality – business rates reform is ‘unravelling’: UKHospitality has said the government’s business rates reform is “unravelling”, with the high street set to pay thousands of pounds more. Earlier this week, the trade body accused the government of creating a two-tier economy through its new rateable values. New analysis from UKHospitality now shows that the average pub’s business rates, even with the reduced multiplier and transitional relief, will increase 15% next year – an extra £1,400. It said that in 2027/28, an average pub’s rates will be £4,500 higher than today, and in 2028/29, will be £7,000 higher. In total, over the three years, an average pub will pay an extra £12,900. A hotel will be paying an extra £28,900 in rates next year, while in 2027/28, it will be £65,000 higher than today, and in 2028/29, £111,300 higher. In total, over three years, an average hotel’s rates bill will increase by £205,200. By 2028/29, an average pub’s business rates will have increased by 76%, and an average hotel’s by 115%. In comparison, the rates bill for a distribution warehouse, the likes used by online giants, will have only increased by 16%, while an office building will have only increased by 7%, and a large supermarket by only 4% by 2028/29. UKHospitality is now calling for the chancellor to urgently increase the level of business rates discount for hospitality properties from 5p to 20p, as previously proposed and permitted by law. UKHospitality chair Kate Nicholls said: “The government promised in its manifesto that it would level the playing field between the high street and online giants. The plan in the Budget to achieve this is quickly unravelling – and will deliver the exact opposite. Our analysis shows that hospitality businesses will be paying more. Pubs will see bills increase by thousands and hotels by tens of thousands. We repeatedly warned the Treasury ahead of the Budget that hospitality would be uniquely impacted by significant increases to rateable values, due to the pandemic impacting previous valuations. This had to be factored into the level of business rates discount it offered the sector. The eye-watering increases pubs, hotels and other venues are now waking up to was exactly the reason why the Treasury had to implement the maximum possible discount. The decision not to do so will lead to higher bills next year. The government can solve this issue. I’m certain they did not intend to provide online giants, office blocks and out-of-town supermarkets with a better deal than local pubs, neighbourhood restaurants and coastal hotels. We agree with its reforms to deliver permanently lower business rates for hospitality, and we appreciate the package of transitional relief, but its current proposal is not delivering lower bills. A 20p discount for hospitality would. We urge the chancellor to revisit.”

 

Keystone on the brink of collapse: Keystone Brewing Group, the brewing operation behind Hofmeister, North Brew Co, Four Pure and Magic Rock and backed by investment firm Breal Group, is on the brink of collapse as it grapples with surging costs and waning consumer confidence in the run-up to this week's budget. Sky News reports that the group – which also includes Black Sheep Brewery, Purity Brewing Co, Brick Brewing Co, Brew by Numbers, as well as distribution partnerships with brands such as, Big Drop, Wolfpack and Maison Sassy – has filed a notice of intention to appoint administrators to give the company time to orchestrate a restructuring or sale. Keystone employs roughly 190 people at breweries across the country. The notice of intention to appoint FRP Advisory as administrators to Keystone is understood to have been made amid pressure from a number of the company's trade creditors. Industry sources said Keystone had seen a slump in sales this month amid dwindling confidence from key trade customers and consumers ahead of the Budget. One brewing executive said the persistent drip-feed of speculation about tax hikes had prompted trade customers to rein in orders and consumers to reduce spending in the last few weeks. Keystone is run by industry veteran Steve Cox, who joined earlier this year with a brief to hit a £100m annual sales target by 2028. Following the Budget announcement, Cox said: “Today’s Budget offers some acknowledgement of the pressures facing hospitality through the commitment to permanently lower business rates, but for breweries, the reality is far more challenging. Rising wage costs, frozen tax thresholds until 2031 and continued uncertainty around alcohol duty all tighten the squeeze on margins that are already razor-thin across the sector. Once again, we’re left without the long-term clarity required to invest with confidence, to hire, or to expand.” Keystone is backed by Breal, an investment firm which has poured millions of pounds of investment into the brewery sector in recent years, including rescue deals for a number of struggling businesses. In June, the group had announced a £2m investment into the business to support the next phase of its growth, funded by Breal Group shareholders.