High street burns, but Issa brothers mull a fiddle with Nero
Asda owners EG Group are offering to fund a legal challenge against Caffe Nero over its controversial rescue deal, it was reported today.
The Group, owned by the petrol station tycoons the Issa Brothers, has hired lawyers as well as property agents Christie’s and CWM as part of an effort to overturn the coffee chain’s Compulsory Voluntary Agreement (CVA) in court.
Landlords would need to table the action, with EG Group hoping that a success in court would lead to a takeover of the coffee firm.
The Sunday Times first reported the news.
Nero’s CVA was signed amid ongoing chaos on the high street, with landlords forced to accept losing most of their outstanding rent.
The tactic is similar to that used by Mike Ashley this year, who put money behind a bid to overturn Debenhams’ CVA last year.
Nero told the Sunday Times: ““We fully believe the decisions we have taken are in the … best interests of our creditors and other key stakeholders.”
EG Group declined to comment.
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