News - Coffee Republic bounces back

Arab Investments, a private property company best known for plans to build a London skyscraper, has completed the acquisition of Coffee Republic, the coffee shop chain, from administration. 

The company, which is planning to build one of the tallest buildings in London at the Pinnacle in the City of London, will today confirm the acquisition for an undisclosed amount. Administrator KPMG has been in talks to sell the business to Arab Investments for two weeks. Arab Investments said that it would commit "substantial capital" into developing the Coffee Republic brand, and will embark on further expansion of the branch network.

Coffee Republic operates 80 outlets, of which 20 are outside the UK, including Bulgaria and Saudi Arabia. Khalid Affara, who runs Arab Investments in the UK, said: "We intend to start growing the business with immediate effect. "Coffee Republic has a strong brand name and we are bringing additional investment into the company to expand the number of retail outlets in the UK and elsewhere."

Richard Hill, joint administrator and KPMG partner, said that a substantial part of the business had been rescued, protecting 62 jobs. He said: "While coffee shops face tough competition on the high street in these challenging economic times, the amount of interest we received in Coffee Republic is testament to the strength of the brand."
 

Published: July 29 2009 03:00 | Last updated: July 29 2009 03:00
Copyright The Financial Times Limited 2009

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