Coffee Republic enters administration
The economic downturn has claimed yet another victim with the latest being Coffee Republic.
The coffee and deli chain has entered administration and KPMG, who have been appointed administrators, said job losses are “inevitable” at loss-making outlets.
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,” added Mr Hill.
KPMG has been appointed to Coffee Republic (UK), Coffee Republic Franchising and Goodbean, although holding company Coffee Republic plc is not in administration.
The company has 153 directly-employed staff, with more than two dozen of these based at its headquarters in London, while 127 are based at 20 group-operated outlets.
The group has almost 200 outlets in total in the UK and abroad, including 70 franchises and a further 97 concessions in cinemas and hotels.
The coffee chain was established by brother and sister team, Bobby and Sahar Hashemi, and the first branch was opened almost 25 years ago in South Molton Street, London.