7 July 2009 - Richard Hill and David Crawshaw of KPMG Restructuring have been appointed joint administrators of coffee bar and deli chains Coffee Republic (UK) Ltd, Coffee Republic Franchising Ltd and Goodbean Ltd.
Coffee Republic operates a total of 187 coffee bars in the UK and ten 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 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 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 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.”