MILAN – Coffee shop chain Caffè Nero has rejected a takeover bid from the billionaire brothers behind petrol forecourt business EG Group, as the struggling cafe chain insisted it would continue with a separate restructuring process. Caffè Nero on Monday revealed that the last-minute offer had been rejected because Mohsin and Zuber Issa, who are also in the process of buying Asda, had not engaged with the company and did not understand its financial situation.
Caffè Nero is seeking approval for a rescue deal that would see its rents cut after sales slumped in lockdown.
The Issa brothers made the offer on Sunday ahead of a key meeting between the coffee chain and its creditors.
The billionaire owners of the UK’s largest petrol forecourt operator EG Group, said Caffè Nero’s landlords would be paid in full for the rent arrears owed to them as a result of the Covid-19 crisis, Sky News reported.
In a statement on Monday evening Caffè Nero said the “clear intention” of the bid was “to disrupt the CVA process currently under way as a precursor to opportunistically acquiring the company at a later date”. It added that a takeover would be unlikely to be completed because it would need the support of lenders.
The 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.
Caffè Nero employs more than 5,000 people and says it serves 135m customers annually.
Landlords voted on a company voluntary arrangement (CVA) later on Monday – a form of insolvency that allows retailers to reduce rent and shut shops.
Results of the vote are expected on Tuesday afternoon.
