The Issa brothers’ plans to takeover Caffè Nero have been crushed after the coffee chain completed a £330m refinancing deal.
Last April, Mohsin and Zuber Issa acquired £160m of Nero Holdings’ mezzanine debt from Partners Group and tried to wrest control of the coffee shop chain from Gerry Ford, its founder and chief executive.
The Asda-owners and petrol forecourt tycoons used their debt position to launch a legal challenge to the chain’s company voluntary arrangement, but in September a High Court judge dismissed their case, rejecting their allegations of “material irregularity and unfair prejudice”.
After this week’s refinancing, Nero’s debt-holders are HSBC, Santander and Carlyle Group, which have also extended an £85m facility to fund its expansion.
