Republic may hoist For Sale sign

TROUBLED Coffee Republic has unveiled plans to dispose of 18 poorly performing bars - and launched a full strategic review that could lead to its putting up the For Sale sign over the whole company.

Co-founder Bobby Hashemi, who recently returned as chairman, is hoping to stem the group's decline. He said: 'We will consider all options.'

Its bankers have revised their terms, but only until December when they will reassess the group's finances. Losses ballooned to £7.5m before tax from £2.4m last time, including one-off charges. Coffee Republic added that it made profits of £1m, before interest, tax, depreciation, amortisation and one-off charges, from losses of £350,000 a year earlier.

Turnover rose for the year ended March 32% to £27.8m, but acquisitions represented all of that growth. On a like-for-like basis, sales fell 6.8%, compared with 8.6% growth the previous year.

The 18 bars accounted for 10% of its sales. Coffee Republic took a £5.25m one-off charge to cover the sell-offs, and a charge of £400,000 for restructuring and job losses. It will be left with 90 bars following the sale.

Hashemi was fielding calls after today's announcement, triggering rumours chief executive Peter Morris was being sidelined.