Scottish coffee chain Beanscene has gone into administration after its new backers were unable to continue with necessary cash injections.
Beanscene has 14 outlets across Scotland, which will continue trading under administrators KPMG.Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as administrators on Thursday 24 July, and hope to find a buyer for the chain. The statement revealed that despite the company’s £4 million turnover its overheads became unsustainable.
“Add to this the costs of five leases which had been entered into for premises that were not fitted out or trading and the result were bottom-line losses, which have continued into the current year,” added the statement.
Ownership of the business had transferred in April this year and a significant amount of funds were injected into the business, but following “an unexpected change in circumstances” the new backers couldn’t continue with their previous financial input and the directors were forced to place the company in administration.
“The opportunity now exists to acquire a strong brand name, based on quality coffee delivery in a relaxed ambience,” said Nimmo. “We remain hopeful that we can find a buyer for the business and effect a quick sale of the company and its assets.”