SHARES in the high street chain Coffee Republic were suspended last night as directors admitted the group was on the verge of collapsing into the hands of administrators.
In a note released moments before the closure of the Stock Exchange, the group said it was suspending shares "pending clarification of the financial position of certain subsidiaries" including Coffee Republic (UK) Ltd, the group's principal UK operat
ing company.
The business – a 184-strong mix of franchise-owned and company-owned shops in the UK – said it had lodged documents in court in anticipation of appointing administrators.
In its last financial statements in December, chairman and chief executive Peter Breach said the company had eliminated its £3.3 million bank debt and slashed losses to £527,000 in the six months to 28 September, last year. Losses for the previous full year had hit £2.5m.
In 2006, Mr Breach, along with investor Stephen Bartlett, had taken over management of the company after campaigning for the removal of its chairman and co-founder, the stockbroker Bobby Hashemi, after years of disappointing performance.
Mr Hashemi and his sister Sahar, a lawyer turned entrepreneur, created Coffee Republic, one of the UK's first US-style coffee bar chains. She left the business in 2001.
The company floated on the Alternative Investment Market in 2002.
