Cooks Coffee has announced it expects to appoint administrators to place its Triple Two coffee franchise business, comprising Triple Two Holdings Limited and its subsidiaries, into an insolvency process.
In a statement to the Stock Exchange, Cooks Coffee said: “Triple Two was growing rapidly before the Covid-19 pandemic and had shown continuing momentum in FY22. However, in recent times, this momentum has not been able to be maintained and the business has been adversely impacted by the current market environment. Currently there are 11 operating Triple Two franchised stores.
“The company’s larger Esquires business continues to perform in line with management’s expectations and is making a positive contribution to the Group. The Esquires business will not be effected by any Triple Two insolvency process.”
Cooks Coffee said it will make further announcements in due course as appropriate.
New Zealand-founded Cooks is dual listed on the Aquis Growth Market in London and the NZX in New Zealand.
Cooks’ UK estate numbered 86 cafes in March 2023. It acquired Triple Two in 2010.
Earlier this year, the company reported revenues were down 10% due to delayed openings caused by supply chain disruptions.
Some seven Triple Two coffee shops are believed to have closed this year, with the estate numbering 18 at March 2023.
In the previous financial year, four new Triple Two stores opened, and six closed.
Cooks recently announced it had applied a £1.2m impairment charge to the Triple Two business, due to the slower than planned return to a higher growth environment.
The listed company raised money in November 2022 on the London markets, but only raised around a third of its intended funding, achieving a £0.5m raise.
