Shares in Coffee Republic plunged 15 per cent as the group announced plans to sell 18 underperforming bars.

Chairman Bobby Hashemi said the move was part of a review designed to improve the profitability of the remaining 90 High Street sites.

Last year the firm acquired Brighton-based, family-run Good Bean Coffee for an undisclosed sum.

Sales across the group have tumbled in the past year amid growing competition.

Like-for-like sales were down 6.8 per cent in the year to March 31, compared to a 5.8 cent decline at the half-year stage.

Pre-tax losses increased three-fold to £7.5 million due to an exceptional charge to cover the disposal programme.

The 18 bars account for ten per cent of Coffee Republic's revenue but the group has taken a £5.3 million hit to cover expected losses on the sales.