EXCLUSIVE: Retailers thousands of pounds out of pocket following Coffee Boss collapse

Retailers risk being left thousands of pounds out of pocket following the collapse of machine supplier The Coffee Boss.

The Chester-based company supplied coffee machines and ingredients to businesses across the UK, including convenience stores. However, the firm ceased trading last year, with compulsory strike off action filed on Companies House in October 2023.

Despite The Coffee Boss going out of business, retailers are still locked into lengthy contracts worth thousands of pounds, due to the machines being provided on separate finance agreements with third-party providers. Shire Leasing is one of the providers, while Better Retailing understands Arkle Finance is another.

Satellite Finance was also a partner but has terminated its relationship with the Coffee Boss. It also means retailers have been left to source ingredients from other providers for the machines, while being left to pay for repairs from external companies should they break down.

Several affected retailers told Better Retailing they still have four years of five-year contracts left to pay, claiming no official notice had been provided by Coffee Boss that it had gone out of business.

One retailer told Better Retailing the monthly payments for their machine amounted to £151.67, meaning they still have more than £7,000 of outstanding debt on their contract. They added: “It’s frustrating because the lease is with another company, and I can’t do anything about it. Another worry is whether I can get someone to fix the machine if it breaks down.

Anthony Fairly, of H&S Premier in Sunderland, expressed similar frustration after finding out through word of mouth about Coffee Boss going out of business. Other businesses were also promised free stock as an incentive for signing contracts, but claimed this promise had not been met.

One former convenience store owner, who was locked into a five-year contract with Coffee Boss, added: “The service has always been shoddy and there wasn’t really any customer service. Someone would say they’d ring you back straight away when you had a query, but you’d be left waiting for days.

“The leasing company won’t let me transfer the contract, so I’m stuck with it. I ended up selling the machine for £985, but this is a drop in the ocean when I’ve still got £5,000 left in debt to pay.  

According to a trading statement for the year ending 31 October 2021 filed on Companies House, the amount of debt owed by the company was £184,013, up from £169, 672 the previous year.

In 2019, other independent retailers were stuck similarly paying off leases worth thousands of pounds after Espresso Essential went into administration.