EG Group to fund a legal challenge against Caffè Nero

 

Mohsin and Zuber Issa owned EG Group has reportedly decided to fund a legal challenge against Caffè Nero

  • Issa brothers have engaged law firm CMS and property agents Christie’s and CWM to rally property owners against Caffè Nero’s plan to slash rents as per the CVA.
  • Going by the CVA, landlords may lose most of their outstanding rent, which the Group has said will be compensating in full.
  • The EG Group has also been alleged of dirty tricks from within the organisation after they made an offer to buy Caffè Nero.
  • One of the group’s spokesperson reportedly said that EG Group submitted an alternative plan to the Board of Caffe Nero, having earlier made a futile attempt to take part in negotiation with the company.
  • Meanwhile, the Mohsin and Zuber Issa owned group is being under controversy as well, it was reported that the duo is exploring the options to sell and then leaseback to the retail chain’s up to 25 distribution centres around the country.
  • Their ASDA purchase is being termed by an ASDA workers union as not an investment but an asset stripping.
  • It was reported that EG Group had hired advisors to draw up plans to sell those distribution centres including Lutterworth, Heston, Washington, Dartford, Bristol, Wakefield, Didcot and many others, assets to raise over £1 billion.

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