North-East based national coffee chain MangoBean Coffee has been rescued from administration, safeguarding all jobs at its Newcastle-upon-Tyne head office.
The ambitious chain, which had set its sights on becoming the fourth largest coffee chain in the country and planned as many as 200 store openings across the UK over the next five years, was forced to call in administrators on 1 March after a downturn in trading.
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.
Its website currently lists seven Mangobean outlets, including Manchester, Liverpool and Sheffield, with a further five “coming soon”.
However, Julien Irving of administrator Leonard Curtis Business Rescue & Recovery explained 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.”
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.
MangoBean was founded by sole director Shane Saunders. Leonard Curtis did not specify whether Saunders involved in the rescue deal.
Julien Irving and Andrew Poxon of Leonard Curtis were appointed joint administrators on 1 March 2018.
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