EG Group eyes up Caffè Nero

By Liz Wells in Industry News 30th November 2020

The brothers behind forecourt operator EG Group have made a bid to take over struggling coffee chain Caffè Nero, reports suggest.

Caffè Nero is currently undergoing a company voluntary arrangement (CVA) process aimed at reducing its rental bills. The CVA involves plans to close a number of the chain’s 650 Caffè Nero-branded sites, with the aim of switching to a turnover rent model for the remaining outlets.

Sky News is reporting that Mohsin and Zuber Issa approached the business over the weekend. Part of the Issa’s offer is to pay Caffè Nero’s landlords in full the rent arrears owed to them, due to the massive reduction in customer footfall following the coronavirus pandemic.

A vote is expected to close tonight, but it is understood the Issa’s approach could lead to the vote being postponed.

EG Group, along with private equity firm TDR Capital, bought Asda from Walmart for £6.8bn in September.

EG Group and Neither Caffè Nero have yet to comment.