COFFEE REPUBLIC Investors' Blog: East Kilbride

10th April 2008

Source:
http://iclanarkshire.icnetwork.co.uk/eknews/news/tm_headline=action-needed-to-halt-town-centre-exodus&method=full&objectid=20741450&siteid=50144-name_page.html

Coffee Republic are set to open in yet another shopping centre, but this time north of the border.

Chris Grundy (East Kilbride Shopping Centre Director) commented: “In the last 10 months we have brought a number of major high street stores and smaller independent shops to East Kilbride. In the past few months alone Retro, the Knitwear Gallery, Ladbrokes, St Enoch News, Coffee Republic, La Crepe Cuisine and Burger King have all come on board.

http://www.shopek.co.uk/content/default.asp?page=s1

Coffee Republic reborn

Coffee Republic was formed in 1995 by Bobby and Sahar Hashemi, a brother and sister who wanted to bring quality coffee from New York to Britain. They saw the opportunity for exporting the coffee bar concept to Britain. Over the past twelve years the company has been through several phases, but is now taking a radically new direction, and embarking on what may be its most exciting phase to date.

Bobby Hashemi’s instinct had been correct, and in the eight years after establishing the first ever Coffee Republic on South Molton Street in London, the company grew rapidly, growing to more than a hundred outlets and achieved a stockmarket listing. However, the company never made a profit. In the financial year ending March 2006, from a turnover of almost £15 million, the company made a loss of more than £1.4 million.

The need for change

While investors were prepared to forgive a company that was growing rapidly, their patience began to wear thin once the company started to contract as it did from 2003. The catalyst for change came from Steven Bartlett, an established retail entrepreneur. He believed that Coffee Republic could succeed in Plymouth, where he was living, and so he applied for a franchise.

He was surprised to be turned down, and so he applied again. Having been rebuffed a second time, he was much less surprised to discover an online chatroom full of highly disgruntled Coffee Republic shareholders. He became convinced that the company was not being run as well as it could and he resolved to do something about it.

Together with Peter Breach, Bartlett began to acquire shares in the company, and by September 2006, the pair owned 26 per cent of the company. Through the online chatroom they had gathered the support of a further 26 per cent of the shareholding, and so requisitioned an Extraordinary General Meeting to remove the company’s senior management.

The response from the Board was to ask Breach and Bartlett to withdraw the requisition in return for being installed as chairman and chief executive respectively. They agreed and took up their new positions at the end of October 2006.

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COFFEE REPUBLIC Investors' Blog

East Kilbride CR Deli to be a hit

Coffee Republic now open in East Kilbride shopping centre

CR Deli set for East Kilbride shopping centre, Scotland

*Last blog update*

Coffee Republic Links

Coffee Republic Archive

Financial Results - 2007

International operating stores

International Master Franchises signed

Rumours - International Master Franchises

Coffee Republic reborn

Fool.co.uk Headlines

Latest hospitality news from CatererSearch

Last blog update