A business partner of Italian coffee manufacturer Lavazza was today given five weeks to sell its franchise agreement with the chain to avoid being wound-up at the high court.
Registrar Derrett gave Catalyst Retail – which had been intended to handle a major expansion plan for Lavazza’s Espression coffee shops – until 19 August to settle its debt with petitioning creditor Slawomir Szulc, of Fanfare House, Somerset Road, Ashford, and five other supporting creditors.
She said: “I am inclined to grant a final adjournment on the basis of settlement for everybody.”
But she warned the company: “If you come back and there has been no progress an order will be made.”
Lawyers representing Szul had sought a “usual compulsory order” winding up Catalyst Retail now, but Chris Jeffs, representing the Manchester-based company, sought the 35-day adjournment to finalise sale of its main asset, a master franchise agreement with Lavazza.
Lavazza is required to approve any such sale, but Mr Jeffs said that two potential purchasers have now been approved. He said that Catalyst’s largest unsecured creditor, who is owed £147,000, supported the application to adjourn the petition as he and other creditors are likely to receive “significantly more” if a sale is agreed than through the winding up process.
Lavazza and Catalyst Retail went into partnership late last year, but earlier this year it was reported that their expansion plans had run aground following difficulties with franchisees.
In January, Lavazza announced it had appointed Cushman & Wakefield to help it find up to 400 new Lavazza Espression shops by 2023. It wants to open 50 stores in greater London in the next three years and has asked Cushman & Wakefield to find shops sized between 1,400 sq ft and 2,000 sq ft.
