Coffee kiosk firm goes into liquidation

A CHAIN of coffee kiosks which traded out of former police boxes across the city has gone into liquidation.

It is understood the California Coffee Company, which sold coffee from 40 Tardis-style boxes, ran up more than 30,000 in unpaid VAT bills.

Now, the company run by struck-off lawyer Gordon Thomson has stopped trading and a liquidator appointed.

In the meantime, a new company Police Box Coffee Bars is operating from the kiosks, which are believed to be leased from a private businessman.

It is understood the company’s problems began when tax chiefs said it had to pay VAT on free coffees as part of a loyalty deal. The Inland Revenue successfully petitioned for a liquidation after CCC failed to pay the VAT bills.

Thomas MacLennan, of Tenon Recovery, who was appointed liquidator, said: "We are still carrying out inquiries into the background of the trading company and who owned the kiosks, but on the face of it, we have no assets to realise."

CCC was established by Mr Thomson seven years ago after he and his wife Maria were struck off by the Scottish Solicitors Discipline Tribunal for professional misconduct.

Last year, a row broke out when Brian Drumm, owner of a hairdressing salon which bears his name, claimed a CCC stall did not meet the high standards of George Street.

Two years ago, Mr Thomson revealed plans to expand the company in Edinburgh after a successful year-long trial.

Each box is understood to cost around 20,000 each to convert.

That followed proposals unveiled a year earlier to open 150 stalls nationwide and to float on the Stock Exchange within two years.

Mr Thomson had hoped the floatation would raise up to 30m, allowing him to take his idea to capital cities throughout Europe.

A spokesman for the California Coffee Company refused to comment today.