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The billionaire brothers Issa have submitted an offer to buy one of the largest British coffee shop chains, Sky News learns.
The billionaire brothers behind UK gasoline retailer EG Group have made a daring takeover bid for Caffe Nero before the troubled coffee shop chain gets landlords’ approval to cut their rental costs.
Sky News has learned that Mohsin and Zuber Issa, who have turned Lancashire-based EC into one of the UK’s largest private companies, wrote to Caffe Nero over the weekend to request the purchase of the chain from its founder and majority shareholder Gerry Ford propose.
According to the EC proposal, the landlords of Caffe Nero would pay the rent arrears owed to them due to the COVID-19 crisis in full.
People close to the situation said it was a significant improvement for the chain’s store owners over the company’s Voluntary Agreement (CVA) proposal, which they are due to vote on later Monday.
It was unclear whether Caffe Nero had responded to the EC offer or what the exact terms of the offer were.
The offer underscores the Issas’ growing reputation as privateers, whose relentless pursuit of growth has resulted in them becoming a group of more than 44. 000 employees in 6000 locations in Europe, the USA and Australia.
In September, the brothers and their private equity backer TDR Capital reached an agreement with Walmart to purchase Asda for £ 6. 8 billion. .
As part of the CVA proposal, some of the 650 Caffe Nero branded locations could eventually be closed, although the plan’s focus is on moving to a sales rental model.
The company also operates 150 stores under brands such as Harris & Hoole, which are not part of the CVA.
Mezzanine borrowers Alcentra and Partners Group have hired FTI Consulting to advise them, while Deloitte advises the banks.
The CVA vote, due to close on Monday evening, is one of the numbers that has drawn the wrath of the British Property Federation, which represents commercial landlords and has accused retailers and restaurant chains of « arming » the bankruptcy tool.
In response, high street gamers say their futures have been threatened by the carnage of the coronavirus pandemic and tens of thousands of jobs have already been lost.
Like rivals like Pret a Manger, Caffè Nero has been hit hard by lower footfall in the city centers as millions of Britons continue to work from home.
© 2020 Sky UK
Caffè Nero, EG-Gruppe, Mohsin Issa, Zuber Issa, Gerry Ford
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Ref: https://news.sky.com
