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30 Nov, 2020 15:30

EG Group eyes up Caffe Nero - report

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The British billionaire brothers behind the £6.8bn takeover of supermarket chain Asda are poised to swoop on coffee chain Caffe Nero, it was reported on Monday.

According to Sky News, Mohsin and Zuber Issa’s EG Group wrote to Gerry Ford, the founder and controlling shareholder of the struggling chain, over the weekend.

Under their proposal, rent arrears accrued by Caffe Nero during the pandemic would be repaid to landlords in full, Sky reported. No further details are known, and both EG and Caffe Nero have so far declined to comment.

The news comes as Caffe Nero’s creditors and landlords prepare to vote on insolvency plans. Earlier this month, the chain – which faltered as lockdown measures kept people away from city centres and transport hubs – entered a company voluntary arrangement (CVA), and is now looking to renegotiate rent agreements and cut costs.

KPMG is advising Caffe Nero on the CVA, which requires the backing of creditors and landlords. Caffe Nero employs around 5,000 people and has 650-branded sites.

In September, EG Group – which operates petrol stations across the UK – and private equity firm TDR Capital struck a £6.8bn deal with US retail giant Walmart to acquire Asda.

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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.