Talking Retail Grocery and product news for independent retailers
The news comes after Caffè Nero snubbed a takeover offer from EG Group.
The Issa brothers made an offer for the coffee chain on Sunday (29 November) ahead of a meeting between the coffee chain and its creditors. Caffè Nero is seeking approval for a rescue deal that would see its rents cut after sales slumped in lockdown. It dismissed the bid as “opportunistic” and vowed to go ahead with its plan.
Sky News is this morning (1 December) reporting that a source close to the situation said that EG’s law firm, Kirkland & Ellis, have told Caffè Nero that a deal could be agreed within two weeks, reducing any uncertainty for the company’s workforce of more than 5,000 people.
Julian Dailly, head of retail insights at brand intelligence specialist Savanta, said: “The firm’s heavily urban site base has been hit harder by the drop in footfall as offices and city centres closed, while competing shops have adopted new approaches to attracting and retaining customers, including convenience store vending machines, delivery services, and drive-thru sites.
“Any new owner of the business will need to address these challenges as a priority if the brand is to return to its past success.”
