Wahaca has been acquired in a rescue deal by the billionaire owner of Nando’s.
Dick Enthoven, the South African behind Nando’s, has agreed to provide Wahaca with £4m in fresh investment through a Luxembourg-based holding company, Yellowwoods, in return for a majority stake in the struggling restaurant group.
Wahaca shut 10 out of its 28 sites earlier this year as part of a company voluntary arrangement (CVA).
Wahaca said it would receive a cash injection from its shareholders and lenders as part of the CVA.
In September, it emerged that Wahaca’s banking lender NatWest agreed to write off millions of pounds of debt to prop the chain up.
Mark Selby, Wahaca co-founder and CEO, said: “As laid out in our published CVA, we had to raise new cash in order to take the business forward in the strongest position possible.
“As part of that, Yellowwoods have lent money to Wahaca alongside their equity stake in the business.
“We are very proud that our investors and our bank continue to be excited about our future and are supporting our drive to be the most sustainable restaurant group in the UK.”
Enthoven helped set up Nando’s in 1987 after he provided Fernando Duarte and Robbie Brozin with a start-up loan.
After opening its first restaurants in Johannesburg and Portugal, Nando’s expanded into the UK in 1992.
Nando’s UK operations, which encompass more than 300 restaurants, are headed up by the tycoon’s son, Robby Enthoven, who joined the company’s board in 1993.
Dick Enthoven, who is one of South Africa’s richest men, also owns Stellenbosch winery Spier and insurance firm Hollard.