Coffee Republic goes into administration

Coffee Republic Plc’s three main subsidiaries have gone into administration.

Coffee Republic

It has appointed KPMG to handle the process and will affect Coffee Republic (UK), Coffee Republic Franchising and Goodbean.

However, the holding company, Coffee Republic Plc, is not in administration.

KPMG says: “The administrators are assessing the viability of individual outlets and expect to close the loss-making outlets with inevitable job losses.”

The announcement follows speculation that such a move would be inevitable after shares in the coffee chain were temporarily suspended on 6 July

Coffee Republic operates 187 coffee bars and has 153 staff in the UK. This includes 70 franchisees, as well as concessions in cinemas, retail outlets and hotels.

The chain reported a loss of £527,000 for the six months to September 28 on a same store sales drop of 0.2%.

Rival coffee companies have also felt the pinch, with Starbucks reporting a 77% fall in quarterly profits, after being hit by falling sales and the cost of store closures.

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