Coffee Republic has been rescued from administration and 62 jobs have been saved after a deal was agreed with Arab Investments to purchase the UK coffee chain.
Administrator KPMG announced that the acquisition was completed today by the London-based property investment firm.
Holding company Coffee Republic plc, had followed its three subsidiaries – Coffee Republic (UK) Ltd, Coffee Republic Franchising and Goodbean Ltd – into administration earlier this month, and the administrators were forced to close 10 under-performing company-owned stores.
The firm has said it intended to commit “substantial capital” into developing the brand and will be “embarking on further expansion of the branch network”. The chain currently has 80 outlets, 60 of which are located in the UK.
Khalid Affara of Arab Investments, said: “We intend to start growing the business with immediate effect. Coffee Republic has a very 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, added: “I’m delighted that we have agreed the sale of Coffee Republic, rescuing a substantial part of the business and protecting 62 jobs. 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.”
Arab Investments is currently developing the tallest building in the City of London, The Pinnacle.