MISSISSAUGA, ON, Oct. 17, 2014 /CNW/ - Today, The Second Cup Ltd. ("Second Cup" or the "company":TSX: SCU) announced the acquisition of 17 Second Cup cafés concentrated in prime Toronto area locations.
The cafés are currently owned by long-standing franchisees, Debbie and Bob Riche, who will be joining the Second Cup team as Director of Operations, Corporate Cafés and General Manager, Corporate Cafés, respectively. The Riches have more than 20 years of experience as outstanding operators. They will continue to manage the acquired cafés, as well as additional company-owned locations. The acquisition of the cafés is expected to close on November 6, 2014.
All 17 cafés will remain open and employment offers are being made to all staff members. "This acquisition allows Second Cup to revitalize these prime locations, and benefit from Debbie and Bob Riche's invaluable expertise," says Alix Box, President and CEO, The Second Cup Ltd. "Debbie and Bob will significantly enhance our ability to successfully operate company-owned cafés. While we remain committed to our franchising strategy, we will own some cafés, which we intend to operate to our highest standards of excellence."
"The combination of financial resources from Second Cup and management talent from the Riches provides a value creation opportunity for Second Cup," continues Ms. Box. "This transaction is expected to be accretive to earnings in 2015. It's all a part of the revolution that's taking place at Second Cup." These 17 cafés are being obtained via a Personal Property Security Act foreclosure, as a result of funds owed to Second Cup of approximately $2.2 million or $707,000 net of provisions previously recorded.
"We have loved being a part of the Second Cup family for over 20 years and we are delighted to join the Coffee Central team," says Debbie Riche. "It's an exciting time of positive change for the company. Bob and I look forward to helping build a strong future for Second Cup."
Further details about the new Second Cup strategic plan will be released in early November. As previously announced, Second Cup's new concept "Café of the Future" will be open at King and John in Toronto before the end of 2014. The recently acquired Second Cup cafés will allow for an accelerated roll-out of the new concept. Ultimately, the intent is to revitalize and refranchise most of the acquired 17 cafés.
"This is a new beginning for us and for Second Cup," says Bob Riche. "We are inspired by the change that is currently taking place within the company. We look forward to rejuvenating these cafés and using them to showcase Second Cup innovation, while enhancing the ultimate coffee experience for customers."
About Second Cup
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating approximately 350 cafés across the country. All of the close to 4,000 Second Cup baristas are trained coffee experts who handcraft over 1 million coffee and tea beverages every week, and are committed to ensuring excellence in every cup and the very best customer experience possible. For more information, please visit www.secondcup.com or find us on Facebook and Twitter.
SOURCE: The Second Cup Ltd.
For further information: Rebecca Crittenden, Strategic Objectives, Tel: (416) 366-7735 X268, Email: [email protected]