Makeover for Coffee Republic

SOFA, so bad, says Coffee Republic. It is swapping its sofas for steel chairs to discourage customers who lounge around all afternoon.

Chairman Bobby Hashemi said: 'We felt it wasn't a profitable proposition for guests to be sitting there for an hour nursing one cup of coffee.'

He wants to convert his shops to a Deli-bar format, selling sandwiches and hot food. Trials show this boosts sales by more than 20%, which should help the group return to profits.

Pre-tax losses increased from £7.5m to £9.8m for the year to March. Former Ernst & Young accountant Simon Drysdale joins as finance director.

The group is in 'the advanced stages' of raising additional equity financing to roll out the Deli concept and restructure its debts.