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.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...