On Sunday 3rd January it was reported that Amstrad founder Lord Sugar has joined hands with the Issa Brothers' in a bid to takeover Caffe Nero.
Mohsin and Zuber Issa are presently funding an attempt by Caffe Nero's landlords to block the coffee chain's insolvency arrangements, which would see them lose outstanding rent payments.
The Blackburn-born billionaire brothers are funding the challenge so that the coffee chain is left with no option but to sell itself to EG Group. Now, if Lancashire Telegraph’s reports are to be believed then Lord Sugar's company has also reportedly filed its involvement in the challenge on Christmas Eve. Commenting on the report, a Caffe Nero spokesperson to the newspaper said, "We intend to defend the challenge vigorously. In the meantime, we remain focussed on managing the business through the current Covid-19 enforced trading restrictions, and re-growing our sales in the months and years ahead."
Lord Sugar's representatives are yet, to have issued a statement on the matter but have confirmed the Amstrad founder's involvement in the bid.
Euro Garages Group which employs around 5,000 people across the UK and has branches in Clitheroe and Preston expressed their interest in the coffee chain earlier last month. Their offer was however, rejected by founder Jerry Ford who instead opted for insolvency. Under current proposals, Caffe Nero's rents are set to be slashed as part of a company voluntary arrangement agreed as part of the insolvency process. However, such arrangements are controversial as landlords to the coffee chain’s outlets are set to lose much of their outstanding rent if this were to proceed.
In response the Issa Brothers and their backers, now including Lord Sugar, hope that by backing landlords' legal challenge to this process, the entire insolvency process can be derailed allowing the chain to be taken over by EG Group.
