Tea shop Whittard faces closure
Tea shop Whittard faces closure
Tuesday 23rd December 2008
Whittard of Chelsea could face closure, as the chain looks like becoming the latest victim of the economic slowdown.The 130-outlet strong tea and coffee seller is both facing the economic slowdown and pressure from its Icelandic owner Baugur, which has been battered by the crisis to hit Iceland.
The firm has not filed for administration yet and is looking for new buyers.
Even if it did go into administration, the chain could be saved by a new buyer.
The BBC reports Ernst & Young has been lined up to act as administrator if needed.
In October, the tea and coffee seller was put up for sale by Baugar following a review of cash management of the chain, and a number of bidders came forward
It is understood the Icelandic bank Landsbanki, now nationalised, has withdrawn the tea shop's credit lines after no buyer was secured.
Whittard of Chelsea was established in 1886 by Walter Whittard on Fleet Street. In 2005 it was sold to Baugar for £21.5 million.
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