Private equity backers call time on bar chain The Alchemist

The long-standing private equity backers of The Alchemist, the well-known town centre cocktail bar chain, are calling time on their ownership of the business.

Sky News has learnt that Palatine, which has owned The Alchemist since 2015, is working with advisers on an auction of the company. The Alchemist, which has withstood a tough economic environment exacerbated by tax hikes earlier this year, trades from 23 sites in the UK and one in Germany.

It employs close to 1,000 staff. City sources said the sale process was being conducted by Pura Advisory.

The chain trades in locations including Birmingham, London, Manchester and Newcastle. News of the prospective sale comes on the day that Sir Keir Starmer outlined plans for a quickfire review of licensing rules aimed at enabling pub and bar operators to extend their opening hours.

"This review is about cutting red tape, boosting footfall, and making it easier for venues to put on the kind of events that bring people together," the prime minister said. "When our locals do well, our economy does too." Palatine's portfolio has encompassed a number of consumer-facing companies, but the firm is now increasingly focused on business-to-business investments.

The price it hoped to command from a sale of The Alchemist was unclear on Thursday. Last year, it announced plans for ten additional openings, backed by a £15m loan facility with the challenger bank OakNorth.

Simon Potts, chief executive of The Alchemist, said at the time: "Despite the well-known challenges facing the hospitality sector, we take pride in our unwavering commitment of growing our brand across the UK." The company has also closed a number of underperforming venues. A spokesperson for Palatine declined to comment..