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Coffee Republic in administration | Coffee Republic in administration |
(9 minutes later) | |
The coffee chain Coffee Republic has gone into administration, becoming the latest victim of the economic downturn. | 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. | 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. | 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. | Administrators at KPMG have warned that job losses are "inevitable" at loss-making outlets. |
Recession-hit | 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. | 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. |
AFFECTED STORES BeckenhamBirmingham, New Hall StBirmingham, Temple RowBluewaterCanary WharfCanterburyChester, 33 Northgate StEaling, The MallHoveLondon, George StLondon, Great Marlborough StLondon, Kings RdLondon, QueenswayLondon, Rathbone PlaceManchester, York HousePembridgeRichmondStainesWorcester class="" href="/2/hi/uk_news/magazine/7642138.stm">What does administration mean? | |
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. | 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. | "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." | "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. | 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. | 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. | 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. |