Gaucho steakhouse saved by lenders
Gaucho steakhouse is set to be saved from closure by Incestec Bank and SC Lowry as part of a rescue deal.
The two businesses will buy all 16 steakhouses and a total of 750 jobs are expected to be saved.
Administrators from Deloitte have confirmed that the restaurants will be sold to Investec Bank and SC Lowy, subject to the implementation of a company voluntary arrangement to allow the business to shed all liabilities relating to its sister restaurant brand, Cau.
Administrators closed all 22 Cau steakhouses in July when Deloitte was appointed, with the loss of 540 jobs.
Gaucho, which specialises in Argentinean steaks, has 12 restaurants in London as well as eateries in Birmingham, Manchester, Leeds, Edinburgh, Dubai and Hong Kong.
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 said to have suffered due to consumers changing 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 over recent months.