Despite divesting assets for months, Tesco has now taken complete ownership of loss-generating coffee chain Harris + Hoole.
The grocer bought out the Tolley siblings, founders of the coffee shop business, who left just over six months ago. It has not been confirmed how much Tesco paid for the 51% stake held by the Tolleys.
A spokesman said Tesco said had taken advantage of an option to acquire Harris + Hoole that had been preserved in the original deal with the Tolleys three years ago.
“We have worked successfully with Harris+Hoole since investing in the business three years ago and will continue to partner with the management board in the future,” the spokesman said.
Tesco has been reviewing all aspects of its business as it tries to cut costs and revive sales after the 2014 accounting scandal and unprecedented losses.
Harris + Hoole now has 43 outlets, including 29 in Tesco stores, and employs over 500 people. Losses grew to £25.6m in the year to 1 March 2015, compared with £12.8m in the year before as it opened more than 20 new coffee shops.
It’s understood that staff will be unaffected by the change in ownership.
