Coffee Republic in administration

By John Hill on July 7, 2009 4:17 PM |

Tagged with:

Falling consumer spending has been blamed for Coffee Republic's descent into administration.

The high street chain announced the news on Tuesday, and job losses appear likely as administrators sift through the performance of each individual coffee shop.

Loss-making outlets look likely to be closed as joint administrators Richard Hill and David Crawshaw search for buyers for profitable sites.

Staff at the Cabot Place West branch - one of 187 coffee shops owned by the company - hope to hear more about their future within the next couple of days. A total of seven people are employed in the Wharf outlet.

Mr Hill 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.

"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."