Billionaire Issa brothers’ Caffé Nero buyout killed-off by £330m refin…

The Issa brothers’ hopes of taking over Caffe Nero have been killed off by the coffee shop chain.

This comes after Caffè Nero completed a refinancing deal to cover debts of £330m, reports The Times.

Last April Mohsin and Zuber Issa, who started their EG Group business empire from a petrol stop in Bury, acquired £160 million of Nero Holdings’ mezzanine debt.

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They used this to try and gain control of the coffee shop from Gerry Ford – who is the company’s founder and chief executive.

The billionaire brothers launched a legal challenge to the agreement the company had to pay creditors back and continue trading.

For Business GV view of Caffe Nero , Deansgate , Manchester Picture Julian Brown DATE produced: 20050925

But in September a High Court estimate dismissed their case – rejecting their allegations of ‘material irregularity and unfair prejudice’.

This is a scarce setback for the Issa brothers, who in the last associate of years have acquired Asda, fast-food chain Leon, and the Cooplands bakery.

Their EG Group bought the mezzanine debt from Swiss investment firm Partners and then tried to buy the senior debt from the edges – and failed.

The coffee shop chain was established in 1997 and has over 1,000 stories across ten countries – with the majority being in the UK.

Mr Ford, who remains the majority shareholder, has restarted his expansion of the business now trade is recovering to pre-pandemic levels – with four stores set to open next month.

The EG Group did not wish to comment when approached by Manchester Evening News.

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