MangoBean Coffee, the North-East based coffee shop operator and wholesaler, has been rescued from administration, through a pre-pack process.
The chain, which was founded by Shane Saunders, forced to call in administrators from Leonard Curtis on 1 March after a downturn in trading.
The brand has been saved via a pre-packaged sale to a “connected party” after a period of marketing. All nine jobs have been safeguarded as part of the deal, who will transfer to the new purchasing entity.
Founded in 2007, the company had shifted from supplying beans and equipment to third party outlets into franchising its concept as a high street coffee shop brand.
Since moving into franchising in 2014, the group opened 12 stores, of which eight have operated on a non-franchise model.
In January, Saunders told MCA that the company planning to open 15 stores this year under a string of new agreements.
Saunders, who leads the group, told MCA he expected to reach 28 sites by the end of 2018, and 50 by the end of 2019.
He said that had also signed a deal with the Eric Wright Group, to open five hospital sites, in Preston, Bolton, Oldham, Blackburn and Bury, over next six months.
Julien Irving of administrator Leonard Curtis Business Rescue & Recovery said that a closure of a number of outlets had put pressure on the business.
He said: “Historically, the company was involved in the wholesaling of coffee, tea, cocoa and spices, but more recently had diversified to become a franchisor of coffee shops. Unfortunately, in recent months the business had suffered losses and experienced cash pressures as a result of a number of franchisee shop closures.”
“The director had made attempts to rectify the issues faced but legal action was being threatened by its creditors. It was at this stage that the appropriate steps were taken to preserve the business.”
Leonard Curtis did not specify whether Saunders involved in the rescue deal.
