Taylor St. Baristas enters administration
The move comes after selling the operating license for its eight cafes to Black Sheep Coffee.
After selling eight of its locations to rival Black Sheep Coffee, Taylor St. Baristas has entered administration, citing “too much debt”.
Asher Miller and Henry Lan of David Rubin & Partners were appointed as joint administrators of the company last 19 July.
In a media release, the administrators explained that Taylor’s directors had hoped that the company could trade through the transitional period, ultimately concluding that the highly leveraged capital structure of the remaining business “was no longer sustainable”, with its balance sheet “carrying too much debt to facilitate ongoing trading.”
The Taylor St.-branded cafes are operated by Black Sheep Coffee are not affected by the administration.
The company, which currently employs around 30 staff across the remaining retail, wholesale, barista training and head office functions, is expected to continue to trade in administration under the control of the joint administrators.
“The partnership and wholesale businesses have excellent prospects, and we anticipate that there will be substantial interest from potential buyers. A marketing exercise geared towards identifying a suitable purchaser will be conducted over the coming weeks, with the objective of maximising returns to creditors,” Miller said.
Photo credit: Taylor St. Baristas Facebook
