Posts Tagged ‘kpmg

30
Jul
09

Arab Investments acquires Coffee Republic

Arab Investments Ltd has today completed the acquisition of Coffee Republic with administrators KPMG.

Arab Investments intends to commit substantial capital into developing the Coffee Republic brand and will be embarking on further expansion of the branch network which currently includes 80 outlets, of which 20 are outside the UK, including Bulgaria and Saudi Arabia.

Richard Hill, joint administrator and KPMG partner, said: “I’m delighted that we have agreed the sale of Coffee Republic, rescuing a substantial part of the business and protecting 62 jobs. While coffee shops face tough competition on the High Street in these challenging economic times, the amount of interest we received in Coffee Republic is testament to the strength of the brand. I would like to thank the company’s employees and suppliers who have supported the business over the past three weeks, and helped us to achieve this successful outcome.”

Khalid Affara of Arab Investments, said: “We are delighted to have completed the acquisition of Coffee Republic today and we intend to start growing the business with immediate effect.

Coffee Republic has a very strong brand name and we are bringing additional investment into the company to expand the number of retail outlets in the UK and elsewhere.”

Arab Investments is a substantial privately owned property investment company based in London.

Arab Investments Ltd was advised on the acquisition by Fiona Hamilton, Business Recovery Partner and Head of Scottish Retail at King Sturge who said: “This deal is the UK’s largest coffee acquisition and we were delighted to be able to introduce our client to KPMG. We have provided operational and strategic acquisition advice and will continue to advise Arab Investments on strategy moving forward.”

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07
Jul
09

Coffee Republic in administration

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Tuesday, 7 July 2009

The coffee chain Coffee Republic has gone into administration, becoming the latest victim of the economic downturn.

Twenty of its 187 UK outlets are directly owned and affected by the administration. The rest are franchises or concessions in cinemas or hotels.

The firm has 153 directly-employed staff, of whom 26 are based at its head office in London.

Administrators at KPMG have warned that job losses are “inevitable” at loss-making outlets.

Recession-hit

The chain was formed by Bobby and Sahar Hashemi, a brother and sister team, and opened its first branch in 1985 in South Molton Street, London.

Richard Hill, KPMG partner and joint administrator, 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.

“We will be doing whatever we can to find a buyer for the residual business as a going concern as quickly as possible, so interested parties will have to be prepared to move fast.”

KPMG has been appointed to Coffee Republic (UK), Coffee Republic Franchising and Goodbean, although holding company Coffee Republic plc is not in administration.

Outside the UK, Coffee Republic has outlets in 10 other countries including Saudi Arabia and Bulgaria.

The UK has more branded coffee bars than anywhere else in Europe, according to the consultancy Allegra Strategies. The three biggest players are Starbucks, Costa and Caffe Nero.