The administration at Coffee Republic, a chain of coffee bars, has recently shut down ten of its directly owned outlets. This action is believed to be inspired by the economic crunch plaguing international market. It’s been barely a week since KPMG took over as the firm’s new administrators and the erratic decision has raised many questions because as late as December, last year, the company had cleared all its debts and was expecting to operate in profit. KPMG says the move would leave only those outlets which were operating in profit and cut down on their liabilities. The company has also ceased trading due to the uncertainty about the company’s future. Want to know more about the outlets which have been closed visit BBC News.

The company presently retains 10 directly owned coffee bars, 70 franchises and 97 concessions stalls. Coffee Republic was started in 1995 and has domestic and international presence, but company could not capitalize on its early start and fell prey to competition from competitors like Starbuck, Costa Coffee and Café Nero. Despite this, talks are on for selling the business to entrepreneurs who wish to take over the coffee chain and cash in on its brand value. Sources at the administration have declared that about 100 parties have expressed their desire to take over the chain. To know more on what the administration has to say visit Times Online.

The holding company Coffee Republic Plc had gone bust recently and present scenario was not unforeseen. However, the speed at which things were set in motion took the market by surprise. The company with its strong brand name and wide reach hopes to gain a new life in new hands. Peter Breach, the executive chairman has said “People may not be buying cars, but they still appear to want to buy an affordable luxury like coffee."