KPMG’s David Crawshaw and Richard Hill – who have been appointed joint administrators to Coffee Republic UK, Coffee Republic Franchising and Goodbean – warned there would be “inevitable job losses”.
Hill said: “The recession is hitting discretionary spending on the high street and some of the less profitable bars with expensive leases have suffered.”
He also said he expected “considerable interest” in the profitable parts of the business due to the group’s “strong brand”.
He added: “We will be doing whatever we can to find a buyer for the residual business as a going concern as quickly as possible, so interested parties will have to be prepared to move fast.”
Coffee Republic operates a total of 187 coffee bars and employs 153 staff, including 127 barristas at 20 coffee bars. The holding company, Coffee Republic PLC, is not in administration, KPMG said.
Chief executive Steve Bartlett has stepped down, replaced for the time being by executive chairman Peter Breach. In 2007 Bartlett and Breach ousted founder Bobby Hashemi, who set up the chain with his sister, Sahar in 1995.