Coffee Republic files for administration.

Coffee Republic has become the latest victim of the economic downturn as it files for administration.

The news follows an announcement by the coffee chain last week (3 July) that it was suspending its plc shares, pending clarification of the financial position of its UK operating business.

Richard Hill and David Cranshaw, both insolvency practitioners, have been appointed Joint Administrators of Coffee Republic (UK), its franchising business and GoodBean Ltd – a high street coffee shop chain. 

In a statement issued on its website announcing the notice, it reiterated that Coffee Republic Plc is not in administration.

The coffee chain was opened by brother and sister duo Bobby and Sahar Hashemi in 1995, and after opening their first shop in London, Coffee Republic has now expanded, filling the high street, and internationally has shops in Malta, Dubai, Bulgaria and Turkey among others.

KPMG announced last week that the total number of insolvencies for 2009 so far is 1,571, well behind the figure of 5,000 it had predicted for the year, though it still thinks this may be a realistic figure as companies struggle after the peak holiday season. 

Richard Fleming, UK Head of Restructuring at KPMG said: “We have seen average numbers of around 350 administrations a month since the beginning of the year, but latest monthly figures are much lower at 178.”