Archive Page 2

09
Jul
09

The outlets which have ceased trading

York House, Manchester
Richmond
Staines
33 Northgate Street, Chester
Canterbury
The Mall, Ealing
Canary Wharf
George Street, London
Rathbone Place, London
Great Marlborough Street, London.

The firm’s outlet in Gloucester Road, London, closed shortly before the administrators were appointed.

The remaining nine coffee bars continue to trade as normal. The 70 outlets franchised through Coffee Republic Franchising Ltd and 97 concessions which operate within cinemas, retail outlets and hotels throughout the UK, are not in administration and are also continuing to trade as normal.

Richard Hill, KPMG partner and joint administrator said: “Following our assessment of the Coffee Republic (UK) Ltd-owned outlets we have had to take the decision to close those which are no longer viable to leave the profitable parts of the business remaining. We are now in discussions with interested parties with a view to selling the remaining business as a going concern. There has been huge interest already from potential purchasers and I remain confident of achieving a sale during the course of next week.”

09
Jul
09

Ten Coffee Republic outlets close

From the BBC
9 July 2009

Ten of the 20 outlets directly owned by coffee chain Coffee Republic have closed with the loss of 66 jobs, the firm’s administrators have said.

The news comes two days after the company went into administration.

Tuesday’s move has not affected the 167 Coffee Republic outlets that are either owned by franchisees or are concessions in cinemas and hotels.

Administrator KPMG said it was now in talks with potential buyers for the firm, and had received “huge interest”.

KPMG also confirmed that another one of the 20 directly owned stores, the outlet in London’s Gloucester Road, had already closed just before it was appointed.

It said the remaining nine would trade as normal while it continued discussions with potential buyers for the company.

“I remain confident of achieving a sale during the course of next week,” said KPMG partner Richard Hill.

Coffee Republic had directly employed 153 staff.

09
Jul
09

Coffee Republic to stay in town despite collapse

Coffee Republic in Maidenhead will be safe despite the coffee chain collapsing into administration.

The franchised branch of Coffee Republic, in the High Street, will not be affected. A member of staff at the coffee shop, said: “We have been told we will be safe. Even if the franchised coffee shops go, we are only using the brand so we will still be able to run it as a coffee shop.”

Although the chain has 187 outlets worldwide, only the 20 wholly owned by Coffee Republic are understood to be affected by the administration – while as in Maidenhead, the rest are owner-run franchise businesses.

Coffee Republic Franchising, the company which administers the franchises, has also collapsed but administrator KPMG said the franchised coffee shops are standalone businesses and will continue to trade normally.

09
Jul
09

KPMG planning to complete sale of chain by end of next week

KPMG said yesterday it was planing to complete the sale of the chain by the end of next week. KPMG said it had already received calls from interested parties, mainly other coffee-bar operators.

08
Jul
09

Jobs under threat as Coffee Republic goes bust

From Times Online
July 7, 2009
Catherine Boyle and Dominic Walsh

Coffee Republic, the British coffee shop chain, has gone into administration after weeks of speculation about its future.

Administrators KPMG said there would be “inevitable job losses” at the coffee company, which was founded by brother and sister team Bobby and Sahar Hashemi, near Bond Street, in central London in 1995.

Although the Coffee Republic Plc holding company has not gone bust, its three subsidiaries, Coffee Republic (UK), Coffee Republic Franchising Ltd and Goodbean Ltd have all been placed in administration.

KPMG hopes to sell on some of the company’s profitable franchises and outlets, although Mr Hashemi, who quit the company in 2006, is understood to have ruled out a return to his old company.

A source close to Mr Hashemi, who is now in private equity, said last night: “Never say never, but Bobby has moved on and is focused on other things.”

Richard Hill, restructuring partner at KPMG, said: “The recession is hitting discretionary spending on the high street and some of the less profitable bars with expensive leases have suffered.

“However, Coffee Republic has a strong brand and I expect considerable interest in the profitable parts of the business.”

The group has 153 directly-employed staff, 127 at 20 group-operated outlets. There are 187 Coffee Republic-branded cafes in total in the UK and overseas, including 70 franchises and a further 97 concessions in cinemas, retail outlets and hotels.

The company suspended its shares yesterday “pending clarification” of its financial position as administrators prepared to swoop on its UK business.

07
Jul
09

Notice of administration

Coffee Republic (UK) Ltd (in administration), Coffee Republic Franchising Ltd (in administration) and Goodbean Ltd (in administration) (“the companies”)

Richard Hill and David Crawshaw were appointed Joint Administrators of Coffee Republic (UK) Ltd, Coffee Republic Franchising Ltd and Goodbean Ltd on 7 July 2009.

Coffee Republic Plc is not in administration. We understand that trading of shares has been suspended whilst the Administrators deal with the core business which is run through the subsidiaries.

The Joint Administrators

The affairs, business and property of the Companies are being managed by the joint administrators. The joint administrators act as agents of the Companies without personal liability.
Richard John Hill is authorised to act as an insolvency practitioner by the Institute of Chartered Accountants in England & Wales
David John Crawshaw is authorised to act as an insolvency practitioner by the Institute of Chartered Accountants in England & Wales

07
Jul
09

Stores affected by the administration

Beckenham
Birmingham, New Hall St
Birmingham, Temple Row
Bluewater
Canary Wharf
Canterbury
Chester, 33 Northgate St
Ealing, The Mall
Hove
London, George St
London, Great Marlborough St
London, Kings Rd
London, Queensway
London, Rathbone Place
Manchester, York House
Pembridge
Richmond
Staines
Worcester