Franchise Talk

Coffee Republic founder is ousted in boardroom coup

October 23rd, 2006 | Author: Jack

Major shareholders in Coffee Republic have ousted Bobby Hashemi, the founder of the business and one of the people credited with bringing American-style coffee shops to the UK.

Mr Hashemi, also the chairman of Coffee Republic, stood down ahead of a shareholder meeting to oust him. He had become embroiled in a bitter row with Steven Bartlett, the group’s largest shareholder.

Following the boardroom coup, Mr Bartlett has been appointed chief executive. Peter Breach, who owns 11pc of the firm, has been appointed chairman. Shares rose 7pc to close at 3.13p.

Mr Bartlett, who owns 13pc of Coffee Republic, contacted fellow shareholders through ADVFN.com, an internet bulletin board used by small investors, and set up a shareholder action group. In July he wrote to Mr Hashemi and the Coffee Republic board demanding better communication with small shareholders and changes to company strategy.

However, last month Mr Hashemi launched a thinly veiled attack on Mr Bartlett when he claimed that the business was “being threatened by speculation on internet bulletin boards”. Within days Mr Bartlett and Mr Breach had requested an extraordinary meeting.Mr Bartlett plans to speed up the roll out of Coffee Republic’s franchise model, in the UK and abroad. He also plans to trial Coffee Republic branded self-service machines in convenience stores and pubs. “We are very excited. We have now got to deliver, build a brand and create long term shareholder value. We will be working flat out, to reward those who put us here,” said Mr Bartlett.

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