Costa Coffee boss is to join debt-laden Tragus
Costa Coffee is to get a new managing director after the head of the coffee shops chain quit to join Tragus, the debt-laden company behind the Café Rouge, Strada and Bella Italia restaurants.
Chris Rogers, the group finance director of Whitbread, which owns the the 2177-stores coffee specialist and the budget hotel chain Premier Inn, is to take the helm at Costa in August. Costa has posted more than 40 consecutive quarters of underlying sales growth.
Mr Rogers will replace John Derkach, who is leaving to be chief executive of Tragus, which last month refinanced its £230m debts to avoid an expected breach of its banking covenants.
The heavyweight hiring sparked renewed speculation that Whitbread may eventually seek to spin off Costa. But Andy Harrison, the chief executive of the group, said yesterday: "Costa has an exciting future within Whitbread and Chris will spearhead our ambitious growth plans."
Shore Capital estimates Costa could potentially be worth more than £1bn, or £6 a Whitbread share.
The private-equity giant Blackstone, which has owned Tragus since 2006, pumped £15m into the company to reduce its overall debt pile in March.
The refinancing saw the 295-restaurants company given more headroom on its debts and the full backing of its lenders, including ICG, although Tragus paid a fee of £1.1m for the loan agreement and faces higher interest payments.
Costa, which has nearly 1,400 stores in the UK, grew its total by 25 per cent over the 50 weeks to 16 February.
Fracking is turning the US into a bigger oil producer than Saudi Arabia
Missing Malaysia Airlines plane: Details emerge of two young Iranians using stolen passports in search for a better life
Three-quarters of Britons are saying it wrong - the top ten most common mispronunciations
Oscar Pistorius trial: Athlete's friend asked him if 'he was f***ing mad' after shooting through sunroof
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Exclusive: Impact of immigrants on British workers ‘negligible’
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 1 Watch: The student election Macklemore parody that isn't completely awful - and all the others that are
- 2 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 3 First Kiss: Filmmaker gets 20 strangers to make out on YouTube with awkward results
- 4 Joanna Lumley’s garden bridge over the Thames gets £30m seal of approval from Government
- 5 Ian Wright breaks down in ITV documentary charting his rise to England and Arsenal striker
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...