Coca-Cola brings in restructuring lineup over failed Costa sale
US beverage giant Coca-Cola has called in a team of restructuring experts to advise on the failed sale of high street drinks retailer Costa Coffee last year.
Consultancy firms Alvarez & Marsal and Alix Partners, which both have prominent City presences, are reportedly advising the coffee chain after an attempt to sell it off was abandoned in January following offers from private equity firms that came in below expectations.
The Coca-Cola Company acquired Costa over six years ago and began talks with bankers in August last year regarding the sale of Costa, and has held talks with a number of potential bidders, including private equity firms.
The consultancy giants – which are specialists in corporate restructuring – have been appointed to advise on the coffee chains finances and conduct an operational review of the business, according to The Times.
The talks over Costa’s sale came to a halt in December 2025, ending the months-long auction process which involved private equity firms in the last round of negotiations including Asda Owner TDR Capital and owner of Gails Bakery and Pizza Express, Bain Capital Special.
Coca-Cola purchased the UK’s largest coffee chain in January 2019 after reaching an agreement with FTSE-100 giant Whitbread, worth £3.9bn, and had been seeking roughly £2bn for Costa.
Costa cost struggles
The coffee giant, which boasts 2,700 branches across the UK and Ireland and employs 16,000 people in Britain, has been floundering over the past few years.
In January, Costa’s operating losses more than doubled from £5.8m to £13.5m on revenues of £1.2bn in 2024, according to the most recent Companies House filings. The company attributed this to high street competition and low footfall.
Many of the UK’s other coffee retailers have been struggling with financial fallouts from higher prices for coffee beans and staffing costs, while competition from chains and independent sellers has spiked.
Late last year, Pret, which sells sandwiches alongside hot drinks, wrote off a third of its value amid making £525 in losses since its 2018 acquisition by European investment group JAB.
Alvarez & Marsal, Alix Partners, Costa and Coca-Cola were approached for comment.