Franchisor insolvency puts coffee chain sale in the spotlight

Sarah Stowe

South Australian based coffee franchise Bean Bar has been sold to a separate company controlled by franchisor Ronald Basset, just one day before the Federal Court ordered liquidation of the parent business Basset Holdings because of a tax debt.

The sale agreement is to be reviewed by liquidator Nick Cooper of BRI Ferrier.

Cooper told Adelaide News “There was a sale contract for the company’s franchisor business signed before the company entered liquidation in favour of a related party.

“I am currently reviewing this contract to determine whether the proposed sale was on commercial terms.”

Despite this the seven franchisees and one company-owned store are continuing to trade and the franchisees will be unaffected by the outcome, Cooper indicated.

According to SmartCompany, Basset intends to expand the coffee franchise interstate and internationally.

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