Starbucks raises its share capital
Documents recently filed with the Companies Office show that Starbucks Coffee Company (Ltd) recently received the €20m increase in share capital.
The authorisation of the €20m increase is four times the amount of the previous increase in share capital of €4.9m that was made in October 2009.
The significant increase in share capital follows years of successive losses in 2010, 2009, 2008 and 2007 at the Irish subsidiary.
The company had a shareholders’ deficit of €8m at the end of last year. The filings for last year show that the company has issued €3.6m of the then authorised €5m in share capital.
There are currently 23 Starbucks outlets in Ireland.
Asked to comment on the increase in share capital in the Irish business and any expansion plans here, a spokeswoman for Starbucks said the company currently has no plans for expansion here.
However, she said: “We’re just as committed to the Irish market as ever.”
She said: “We’ve recently signed a new multiple, licensed store deal with the Butler Brothers including the opening of a Starbucks in the former EBS building on Westmoreland Street, which will rejuvenate the area that has suffered since the bank left almost nine years ago.”
She added: “We also have a significant renovation planned for our College Green store in early 2012.”
Starbucks Coffee Company (Ltd)’s latest accounts show that costs associated with the closure of more than 20% of its Irish stores contributed to pre-tax losses in 2010 more than doubling.
The iconic coffee brand only established in Ireland in 2005 and the closure of the five Starbucks stores also contributed to revenues declining by 10% from €18.1m to €16.1m.
The stores closed by the US-owned company were located at Ranelagh, Dalkey, Tallaght, Dundrum and Swords.
Thirteen of the company’s 23 Irish outlets are in Dublin, including two at Dublin airport.
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