Gaucho Group founder Zeev Godik is believed to be amongst the bidders for his former business, MCA has learnt.
Godik, who stepped down from his role as chief executive after 41 years at the helm of the business last November, is understood be talking to investors regarding raising the required funds to acquire the Gaucho and CAU brands, which are currently being marketed by KMPG and Deloitte. Final bids for the Gaucho Group were due on Tuesday, with speculation that offers for the business, which Equistone acquired at the start of 2016 for c£100m, could range from c£50m to as low as £30m.
MCA understands that Deloitte is acting on behalf of Gaucho’s five-strong banking group led by Lloyds.
Godik’s interest comes as MCA has learnt that the company’s 22-strong CAU brand reported a loss of c£19.5m in the year to end of 2017, on turnover of £25.8m. The company said it had reviewed the performance of the estate as a consequence of the tough trading conditions currently being experienced in the casual dining market. Consequently, a one off non-cash impairment provision totalling £14.2m and a one off non-cash onerous lease provision of £3.6m have been included in the accounts.
Gaucho revealed last month that it was considering all its options, after initially hiring advisors to examine whether to close or sell its underperforming CAU brand.
Alchemy Partners, which specialises in investing in distressed and underperforming businesses; the London-based investment house Aurelius; and private equity firm Endless, are all understood to have run the rule over Gaucho.
The company’s ex-managing director Martin Williams, founder of M Restaurants, has also been linked with putting together a takeover package.
Last month, advisors KPMG’s mandate was broadened to solicit proposals from potential investors for the entire company, or parts of the business.
On stepping down from Gaucho last year, Godik said he wanted to consider wider interests and new opportunities based in Dubai where he and some of his family now live. He remained a Gaucho shareholder alongside Equistone and former chairman Luke Johnson.
Godik also backs, alongside members of his family, Bucket, the new seafood shack concept, which launched in Westbourne Grove, west London, earlier this year.
