// 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.
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.