The administrators to Coffee Republic, the collapsed coffee bar chain, have today announced the closure of 10 of its 19 company-owned stores with the loss of 66 jobs.

Richard Hill, partner at KPMG and joint administrator, said the closure of the outlets would leave a core of profitable units which would be sold during the course of next week together with the franchising and concessions business.

He said he had fielded interest from more than 100 interested parties, including coffee shop operators and new entrants keen to retain the Coffee Republic brand.

The closure of the 10 stores, together with that of an outlet in London's Gloucester Road shortly before KPMG's appointment on Tuesday, leaves Coffee Republic with nine company-owned units, 70 UK franchises and 97 concesions within cinemas, retail outlets and hotels.

The group also has 12 international franchises in ten countries, including Bulgaria, Kuwait, Malta, Romania, Saudi Arabia and Ireland.

KPMG is acting as administrator to three of the AIM-listed group's subsidiaries - Coffee Republic (UK), Coffee Republic Franchising and Goodbean.

The quoted holding company is not currently in administration, though trading in its shares ceased on Monday and Mr Hill said insolvency procedure would follow shortly.

Mr Hill said: “Following our assessment of the Coffee Republic (UK)-owned outlets we have had to take the decision to close those which are no longer viable to leave the profitable parts of the business remaining.

"We are now in discussions with interested parties with a view to selling the remaining business as a going concern. There has been huge interest already from potential purchasers and I remain confident of achieving a sale during the course of next week.”

Coffee Republic was founded in 1995 by brother and sister team Bobby and Sahar Hashemi but in recent years has fallen behind Starbucks and Caffè Nero.

Mr Hashemi, who is understood to have ruled out rescuing the company, was ousted in 2006 by rebel shareholders, since when the focus of new management has been on franchising and concessions.

Mr Hill said: "The recession is hitting discretionary spending on the high street and some of the less profitable bars with expensive lease have suffered."

The UK franchises and concessions continue to trade as normal.

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