A pivotal piece in the jigsaw for Gloucester's city centre rebirth has slotted into place with news that an ambitious hospitality partnership fuelled by USA investors is set to take on the landmark site from the city council – bringing with it a promise of up to 40 new jobs at the heart of the community.

The confirmation that Loungers PLC is to write the site's next chapter follows rumours earlier this summer that the shuttered pub's future use would see a shift from the location's former pre-club 'boozer' image to a retail offer aspiring towards family food and drink, while tapping into a stated desire from civic chiefs to add to the location's "café culture" prospects amid the ongoing £200m reboot for the King's Quarter.

With finalisation of the Forum and former-Debenhams University of Gloucestershire Campus steaming ahead, uncertainty had prevailed the since tenant Greene King exited the Chambers during the early stages of the pandemic. Owners Gloucester City Council put the real estate on the market in 2023.

The following May, rival bidders emerged for the 484 sqm prime address, for which Gloucester City Council sought offers of £60,000 a year to take on the lease, which also carried a rateable value of £41,000 and an annual service charge of £7,100.

Having already opened 19 new sites this year and piloting its portfolio to a target of 300 venues, Loungers PLC is now confirmed for the spot, which overlooks Gloucester's Millennium Square on St Aldate Street. Civic chiefs hope the move will add to existing hospitality momentum from immediate neighbour The Regal, which is operated by JD Wetherspoon.

Confirming the decision, Alex Kalebic, Head of Acquisitions, said Loungers was excited to place a second pin in the city map alongside its presence at Gloucester Quays.

With plans to create some 30-40 new roles in the venture, he added: "We are looking forward to bringing our well-loved family-friendly, all-day offer... and to playing our part at the heart of this exciting regeneration scheme."

With an application for a premises licence and detailed planning permission in the pipeline, it is understood that outside seating will be key to the former pub's new use - and Loungers says it hopes to be serving its first guests as early as next spring.

In a statement on the news, Cllr Jeremy Hilton, Leader of Gloucester City Council, said Loungers' decision was "great news for Gloucester and another huge step towards the transformation of the city".

Albeit a familiar pub site, the original St Aldate's Chambers, on the corner of Market Parade, was previously a suite of real estate offices, being occupied by agents Pearce Pope until pints began to be pulled at the rebuilt premises in September 1999.

Initially, the business was run by Scottish and Newcastle Breweries as a John Barras pub and showed sporting events on large-screen TVs, becoming part of the Spirit pub group in 2005.

As a significant London Stock Exchange prospect, the ambitions of Loungers PLC, which runs brands Cosy Club, Lounge and Brightside, were adrenalized in November last year when US investment firm Fortress poured £338m into the growing venture.

With 263 sites in the UK as of March this year, Loungers is looking to add 400 more to its portfolio, which locally already includes the Portivo Lounge in Gloucester Quays, Curio Lounge in Stroud, Fioro Lounge on Cheltenham's Bath Road and Rosado Lounge on Church Street, in Tewkesbury.

In a statement on its future plans, Loungers said: "We intend to continue to pursue an organic growth strategy, driven by the rollout of new Lounge, Cosy Club and Brightside sites and an ongoing focus on operational improvements to drive further sales and margin improvements across the existing estate."

The company added: "This strategy is consistent with the strategy successfully executed by the Group over the past years. The Directors are targeting in excess of 30 new site openings per annum over the medium term."

● Mark Owen, Editor of Punchline-Gloucester.com said: What's a gamechanger for Kings Square! When it landed in Gloucester Quays' infancy, Loungers' Portivo Lounge became a turning point for the venue's hospitality offering and I'm sure that this new addition to the city's heart will deliver the same. For some 20 years, Gloucester City Council has been seeking to create an alfresco dimension for King Square and, given the timing of thousands of students coming here and hundreds of people working at the Forum, this is precisely the right catalyst for regeneration. We heartily congratulate the council on finding the right tenant at the right time, rather than simply filling the space – a fundamentally smart move for everyone's prospects as we move forward.