// Asda owners EG Group are offering to fund a legal challenge for landlords against Caffè Nero
// Owners Mohsin and Zuber Issa have hired CMS to rally property owners to launch a challenge to Caffè Nero’s plan to slash rents
// As part of the CVA, landlords face losing most of their outstanding rent
Asda owners EG Group are reportedly offering to fund a legal challenge for landlords against the coffee chain Caffè Nero.
The billionaire owners Mohsin and Zuber Issa have hired law firm CMS and property agents Christie’s and CWM to rally property owners to launch a challenge to Caffè Nero’s plan to slash rents as part of a CVA.
The brothers hope to derail the insolvency and ultimately take control of the coffee chain, The Sunday Times reported.
READ MORE: Asda owners line up adviser to sell off logistics portfolio
However, EG Group has been accused of “dirty tricks” by an insider after it made an offer to buy Caffè Nero just hours before landlords voted on the CVA at the start of this month.
EG Group previously said it believes its offer would have delivered a “stronger outcome” for employees and landlords, and that Caffè Nero would “thrive” under its ownership.
As part of the CVA, which is being run by KPMG, landlords face losing most of their outstanding rent – which EG Group has said it will pay in full.
Under insolvency law, creditors can challenge the result of a restructuring plan within 28 days.
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8 Comments. Leave new
Maybe, just shut up and run ASDA?
Shut up keish
Lol keish
Café Nero have made billions in profit, but stashed it away in stocks and dividends, instead of contingencies, then rely of landlords and debtors to shoulder the losses.
If capitalism is to work it relies on survival of the fittest, but Café Nero are an animal too fat to out run the tiger And should be bought down for the good of the market.
The Issa brothers are nothing more than optimistic predators. Landlords would be fools to trust them for anything but short term cash.
Caffe Nero and so many other of our great London brands is hurting. After 30 years of providing for us, we need to support them now.
Issa will simply buy, close sites, layoff staff and sell to the highest international group.
ISSA BEOTHERS SHOULD CONTRIBUTE HALF THERE WEALTH TO THE POOR IN PAKISTAN THEN TAKING OVER CAFE NERO
I agree and think it’s opportunistic greed.With Asda they need coffee chains many of their stores don’t have cafes. People who click and collect items need a cafe. This is a problem about landlords. Something needs to be done by Rishi Sunak and Alok Sharma about business and retail rates rents and lots should become housing and then people would use the local facilities
A deco….greed is good.
job of asset striping