Coffee Republic operates a total of 187 coffee bars in the UK and 10 international locations. 20 outlets are owned by Coffee Republic (UK) Ltd and 70 are franchised through Coffee Republic Franchising Ltd. A further 97 concessions operate within cinemas, retail outlets and hotels throughout the UK.
The group employs a total of 153 staff, 26 of whom are located in its head office in London, and 127 are employed within the 20 group-operated outlets. The administrators are assessing the viability of individual outlets and expect to close the loss-making outlets with inevitable job losses.
Coffee Republic was founded in 1995, opening its first shop in South Molton Street, London, and has become one of the UK’s best-known coffee chains. The holding company Coffee Republic plc – which is not in administration – entered AIM in 1998, and during the past seven years the group has expanded significantly, signing its first franchising agreement in 2005 and making a number of acquisitions, including the Goodbean chain.
Commenting on the appointment, 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’ll 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.”
Source: Flex News
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