Description: Popular Ottawa-area coffee chain Bridgehead has been purchased by Second Cup for close to $10 million. Bridgehead has a history of supporting fair trade in the coffee business. The intent is that Bridgehead will be able to keep its own identity under the new ownership, allowing the brand to expand outside of the Ottawa region.
Date: December 5, 2019
1) Have you ever been to Bridgehead for a coffee? What did you like about it?
2) Why do you think Second Cup acquired Bridgehead?
3) What method would Second Cup use to account for this investment? (See page 654 of Wiley’s Financial Accounting: Tools for Business Decision-Making for a hint).