Gaucho has been pressed by HMRC to pay an outstanding tax bill more than £1m later today, it has been reported by Sky News.
However, it is understood the ailing steak restaurant chain does not have sufficient funds unless a buyer is found for the business, with final bids expected from a number of prospective owners, meaning it could face the prospect of being placed in administration.
A spokesperson for Gaucho 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.”
Gaucho appointed KPMG to assess options for its casual dining brand CAU in May this year, before it was revealed that the business was considering all options, including a sale of its entire business.
Advisors KPMG then had its mandate broadened to solicit proposals from potential investors for the entire company, or parts of the business, which private equity group Equistone acquired at the start of 2016 for £100m.
Suitors have been circling the business, including the company ex-managing director Martin Williams, founder of M Restaurants and leisure industry tycoon Hugh Osmond.
While MCA reported last month that Gaucho Group founder Zeev Godik, who stepped down from his role as chief executive last November, was also through to be among the bidders.
