Coffee Republic founder Bobby Hashemi has been ousted as executive chair following a shareholder revolt.

Peter Breach and Steven Bartlett, the leaders of the revolt, have been appointed chair and chief executive respectively.

Nicholas Jeffrey, senior non-executive director, said: “We welcome Peter Breach and Steven Bartlett to the board. They bring valuable experience and skills that will benefit the company at this critical point in the implementation of its franchise strategy.”

He said that Hashemi had “selflessly stepped aside” after co-founding the business 11 years ago.

Hashemi stood down after Bartlett and Breach led a shareholder rebellion following the chain’s decision to refuse them permission to open a franchise in the south west.

He waived his rights in connection with options to subscribe for 15 million ordinary shares – 3 million of which at an exercise price of 1.2p and 12 million at 1.25p.

The Financial Times said that the pair used internet bulletin boards to gain the support of other small investors angry at the company’s decline which has seen it lose more than 90 per cent of its value.

Breach said: “We are excited by the challenge and it is the new management team’s intention to further develop the franchise model, build the brand and create value for all shareholders.” Details: www.coffeerepublic.co.uk