Restaurant group Gaucho on the verge of administration

Wed, 18 Jul 2018 | ADMINISTRATION

Gaucho restaurant group faces going into administration as it struggles to meet the obligations of a £1m tax bill. The chain is on the race to secure a rescue deal as its Cau restaurant in Bristol, a burger and steak franchise with an Argentinean theme, risks closure.

The restaurant group has been struggling for some months and is understood to be looking at three potential rescue deals to meet a deadline by HM Revenue & Customs.

The chain appointed KPMG in May to assess the potential options for its future and particularly the viability of Cau, which has 22 restaurants around the country and has experienced double digit declines in the last year.

Gauncho's advisers hope to secure a deal this week with proposals being filed last Friday by a number of investors including Gaucho's existing management team backed by equity firm Core Capital; Hugh Osmond, the former Pizza Express backer; as well as by Limerston Capital, an investor in companies including Spark Energy.

In a statement, a Gaucho spokesman said: "We have been managing our cash tightly as we near completion of the options process.

"We remain confident that the Gaucho business will emerge from this process on a more stable footing."

However, if a rescue deal is secured, sources say that only the brand's 16 Gaucho restaurants will be secured. Its Cau chain, including its Bristol restaurant will close.

Gaucho joins the number of casual dining groups having suffered to keep afloat in the UK market due to heavy competition, rising operating costs and a decline in consumer spending.

Other brands to have experienced branch closures in 2018 include Byron Burger, Prezzo and Jamie's Italian.

For more news stories about administrations click here. For all our administrations listings, click here.


Share this article



Latest Businesses for Sale

Casual Dine Restaurant
Coventry, West Midlands, West Midlands, UK

150 seater restaurant with open plan kitchen and bar. Fitted out to a very high standard With state of the art kitchen and storage facilities. Offers invited.

Asking Price: £300,000
Turnover: £1,040,000

LEASEHOLD


Hot Beverage Products & Services Provider
South of England, UK Wide

Operating a Twin Sales Model. Two related businesses providing complementary services in the coffee industry with one a well-respected B2B brand for coffee tea and related consumables and equipment and one that works with distributors and manufacture...

Asking Price: Offers Invited
Turnover: £1,420,000

Bakery
Somerset, UK Wide

Long established, fully equipped and profitable bakery in an area of Somerset that is enjoying further development. A bakery has operated out of this location for over 40 years with our client trading in all of those years serving both local resident...

Asking Price: £79,950
Turnover: £468,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
10
 
Jul
 

Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...

 
09
 
Jul
 

John Lewis to close eight stores as COVID-19 accelerates shift to online | BUSINESS NEWS

Department store chain John Lewis has said that eight of its...

 
09
 
Jul
 

Chancellor cuts VAT on hospitality as part of £30 billion rescue plan | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion pla...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
10
 
Jul
 

Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...

 
08
 
Jul
 

Joe.co.uk owner acquired out of administration | BUSINESS SALE

Joe Media Limited, the UK parent company of JOE.co.uk, a pop...

 
29
 
Jun
 

Byron Burger on the brink of administration | ADMINISTRATION

The owners of fast-casual chain Byron Burger are preparing t...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources