The group behind the Mother Mercy cocktail bars has secured a six-figure funding package from the Northern Powerhouse Investment Fund II, enabling the opening of a new site in Durham and improvements to existing venues in Newcastle. Mother Mercy Hospitality Ltd received the investment to support the launch of its fifth cocktail bar in Durham on Saturday.
Expansion and Improvements
Mother Mercy already operates venues in Newcastle’s Cloth Market, Fenwick department store, Grey Street, and its most recent site in Heaton. The company has been ranked among the UK’s Top 50 Cocktail Bars twice in the last three years and has been accredited as a ‘Great Place to Work’. The funding, provided through the NPIF II – NEL Debt Finance fund managed by NEL Fund Managers, will also be used to enhance existing venues, increase capacity, and improve the customer experience.
Founder's Perspective
Founder and managing director Neil Donachie said: “NEL’s support, including a third investment, has been crucial to our growth, especially given the hospitality sector’s challenging access to finance for smaller, independent operators. NEL understood our business model and long-term goals, providing funding that enables us to open new venues, expand Mother Mercy’s reach, and create more jobs and opportunities for our team.”
Investor's View
Jane Siddle, senior investment executive at NEL Fund Managers, commented: “It was fantastic to work alongside Mother Mercy’s accomplished management team on a subsequent investment from NEL. As part of our existing portfolio, they truly demonstrate how strategic funding can create growth opportunities throughout a long-term partnership. I sincerely wish them continued success.”
Growth Trajectory
Since opening its Cloth Market bar in 2019, Mother Mercy has expanded to include high street, concession, and neighbourhood bars. The company is targeting further growth in the years ahead. The £660 million Northern Powerhouse Investment Fund II, operated by the British Business Bank, covers the entire North and provides loans from £25,000 to £2 million, and equity investment up to £5 million, to help small and medium-sized businesses start up, scale up, or stay ahead. The fund aims to drive economic growth in the North by supporting innovation and creating local opportunities for new and growing businesses, particularly those that might otherwise struggle to access finance.
