Coffee shop brand Mangobean is moving ahead with its expansion plans after being sold in a pre-pack after going to administration, founder Shane Saunders has told MCA.
Saunders said the decision was taken to call in administrators after some early stage franchisees wracked up debts, with payment being sought from the main business.
Saunders’ Mangobean Holdings Ltd, which owned of the rights to the brand, bought Mangobean Coffee Ltd out of administration, which he said “wiped the slate clean” from disputed debts.
He told MCA the brand was trading well with 10 stores operational, plans for 13 more in 2018, and a target to reach 50 by 2020.
He said: “Four years ago when we going through a pilot stage, there were stores that weren’t’ really a franchise, but used our brand.
“We had a couple of people who came to us, asking if we could brand their stores, and use it to test the concept.
“What happened is they didn’t pay their bills, and people were coming after us. We were getting into a dirty fight, which had nothing to do with us. Because people were trading under our name, the creditors thought we owed them money.
“We were wet behind the ears and the contracts weren’t as strong as they should have been. There were a few loopholes that people took advantage of.
“It got a bit messy and so our new accountant said the best thing to do was to wipe the slate clean.”
“As a company we are doing well, we just had to get rid of the fat.”