STRUGGLING Caffe Nero Coffee Chain Has Rejected a Bid From Billionaire Brothers.
It has been reported that Caffe Nero has rejected a takeover bid from the petrol station entrepreneurs who recently agreed on a deal to buy supermarket chain Asda. Mohsin and Zuber Issa, the billionaire brothers behind EG Group, made the offer over the weekend to the ailing coffee chain’s founder and controlling shareholder Gerry Ford.
Caffè Nero at the same time is seeking approval for a rescue deal that would see its rents cut after sales slumped during the lockdown. the company dismissed the bid as “opportunistic” and vowed to go ahead with its plan.
The Caffee Nero Chain – which owns 650 own-brand stores and 150 Harris & Hoole coffee shops – has been hit hard by the reduced footfall in city centres during the pandemic. This has forced it to seek a company voluntary arrangement (CVA) – a type of rescue deal that could see some of its stores shut and rents cut on others.
Insiders had said Caffè Nero, which employs 5,000 people, would be an obvious extension to the Issa’s EG Group business. EG also runs 6,000 petrol forecourts in Europe, the US and Australia, and already has brand partnerships with the likes of Starbucks and KFC.
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