Tue, 29 Jul 2025 | BUSINESS SALE
Italian restaurant group Gusto will be acquired out of administration in a pre-pack deal. The acquisition will secure over 300 jobs at the firm, but there are set to be close to 200 redundancies, with six of the company’s 13 locations to close.
Founded in Cheshire in 2005, Gusto secured private equity backing from Palatine through a 2014 management buyout. A deal has been overseen by Interpath Advisory which will see Cherry Equity Partners acquire the majority of the company.
Interpath’s Will Wright and Rick Harrison are leading the transaction and are set to be appointed as joint administrators of Gusto Restaurants Limited. A pre-pack administration process will then see seven of Gusto’s flagship restaurants taken over by Cherry Equity Partners, ensuring they continue trading.
However, six restaurants will close, leading to around 190 redundancies. The sites are currently unnamed, but are understood to be smaller restaurants in suburban locations that have become economically unviable in recent years due to cost headwinds impacting the hospitality industry.
In accounts for the year ending September 30 2023, the company reported turnover of around £26.7 million, up from £24.2 million a year earlier, but saw its post-tax losses increase from £390,000 to £4.5 million. Moreover, its net liabilities at the time exceeded £3.1 million.
Gusto Restaurants Chief Executive Paul Moran said that the deal was “an important step forward” for the business that would secure its future and provide “a strong and stable platform upon which we can start to grow the business again.”
Cherry Equity Partners CEO and operating partner Ed Standring said that the deal, the firm’s third acquisition in six months, “underscores our deep commitment to the UK hospitality sector.”
Will Wright, UK Chief Executive of Interpath, commented: "Although these continue to be challenging times for hospitality operators, we are pleased to advise on this transaction which will safeguard the future of a fantastic brand which has been serving customers across cities and suburbs for over 20 years."
Restaurants across the UK continue to face severe financial challenges
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