Beanscene, the Scotland-based chain of coffee shops, has gone into administration, it has recently been announced.
The chain was transferred to local competitor Tinderbox in April, but the company had difficulty with funding planned investments. KPMG Restructuring have been brought in to manage the sale process.
Despite a turnover of £4 million, the cafe business was left in the lurch when promises of finance from an outside investor were withdrawn halfway through a planned expansion, leaving it with leases on five unusable shops
Beanscene, which has its headquarters in Glasgow, employs 142 staff in 14 shops across Scotland. The company operates from six units in Glasgow, four in Edinburgh and one each in Stirling, St Andrews, Hawick and Ayr. Gordon Richardson founded the chain in 1999.
The company is continuing to trade while a new buyer is sought. The current owners believe that it can be sold as a going concern.
The coffee bar and live music chain helped launch singers KT Tunstall and Amy Macdonald.
