Caffè Nero hires KPMG as it looks to cut rents

By James McAllister

- Last updated on GMT

Caffè Nero hires KPMG as it looks to cut rents

Related tags: Coffee, Coronavirus, Rent

Caffè Nero has reportedly asked KPMG to help negotiate rent cuts with landlords and review options relating to its property portfolio.

According to Sky News​, KPMG is understood to be working with the chain, which operates 660 sites across the UK, on a range of possible options, which analysts say are likely to include mechanisms that would enable rent cuts and possible limited store closures.

Caffe Nero is understood to have been performing strongly prior to the COVID-19 crisis, employing about 5000 people and serving 135 million customers annually.

More than 90% of the chain's outlets have reopened since the Coronavirus lockdown ended, with about 30 sites having remained shut since then.

One source told Sky News​ that Caffe Nero executives had been engaged in 'constructive dialogue' with landlords, but needed to intensify talks as the company seeks to address its fixed cost base.

A spokesperson for Caffe Nero said: "It has been a difficult period since lockdown measures were introduced by the government and we're working incredibly hard to navigate our way forward.

"As part of this, we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords."

The company reportedly declined to comment specifically on the prospect of any store closures.

The slower-than-expected return to offices in city centres has had a severe impact on many of Caffe Nero's rivals.

Last week fellow high street coffee chain Costa warned that up to 1,650 jobs across its estate were at risk of redundancy​ as a result of the ongoing impact on trade caused by the Coronavirus pandemic.

Meanwhile, Pret A Manger is currently in the process of undergoing a major restructure, with 30 of its branches shuttered permanently and 2,800 staff made redundant. 

Related topics: Business

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