Gaucho restaurant group to appoint administrators
Gaucho, which specialises in Argentinean steaks, and has 12 restaurants in London, has confirmed it is to appoint administrators.
There are also restaurants in Birmingham, Manchester, Leeds, Edinburgh, Dubai and Hong Kong.
Gaucho specialises in Argentinean steaks.
The firm’s advisors has been trying to find a buyer for the 39 restaurants in the Gaucho and Cau chains.
However, high levels of debt and various legal matters has meant it has been unable to find an “agreed, solvent solution”, a spokesperson said.
The statement also confirmed an “ongoing underperformance” for the business.
The firms directors have filed notice of intention to appoint administrators, which is owned by the private equity firm Equistone.
The statement went on to confirm that: “Until such time as the administrator has been appointed and agreed plans with management, it is business as usual.”
Equistone backed a management buyout of Gaucho in 2005 and the business was sold to private equity firm Phoenix the following year with a return believed to be around 2.5 times its original investment.
Equistone then took control of Gaucho again in January 2016. Gaucho is the latest restaurant chain to suffer as consumers change their spending habits in a market some observers say has an oversupply problem.
Jamie’s Italian, Byron, Prezzo and Carluccio’s are among a number of restaurant chains that have either announced closures or put plans in place to close outlets.
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