Chilango has been sold out of administration, securing 10 of its 11 restaurants.

The burrito brand announced today that administrators RSM had secured a sale of the group to investment firm RD Capital Partners in a deal that will save 130 jobs.

Last month, Chilango filed a notice of intention to appoint administrators as a result of pressures caused by the coronavirus lockdown, having already gone through a company voluntary arrangement (CVA) at the end of 2019.

As part of the restructuring process, the group cut rents at three of its then 12 sites, exited leases on four dormant sites, and investors were offered the choice between a debt-for-equity swap or a settlement of bondholders’ debts at 10p per pound invested.

Commenting on the sale, Gordon Thomson, joint administrator at RSM said: “Despite the commendable support provided by the government, the pandemic and associated lockdown measures have presented significant challenges to the casual dining industry.

“This deal, together with the backing of RD Capital Partners, secures 130 jobs and will allow the Chilango brand to grow.”