Gaucho, the steak restaurant chain, is set to enter administration after its lenders opted not to pursue a rescue deal.
The company, which employs about 1,500 people, has filed a notice of intention appoint an administrator, understood to be Deloitte.
Sources said they expected the Gaucho chain of restaurants, with 16 outlets, to emerge as a “viable business” from the administration, although the loss-making CAU-branded chain is likely to close, according to a report by Sky News.
Last week, it was revealed that Gaucho was racing to find new investment to pay a seven-figure tax bill, with Her Majesty’s Revenue & Customs (HMRC) now facing the prospect of that demand being unmet.
A spokesperson for Gaucho said: “Despite an extensive options process which attracted proposals from a number of parties, it is with regret that due to the complexities of the group’s legal structure, ongoing underperformance at CAU and the level of indebtedness, the directors have been unable to find an agreed, solvent solution.
“Consequently, the directors have today filed in court a notice of intention to appoint an administrator for the business.
“Until such time as the administrator has been appointed and agreed plans with management, it is business as usual.”
A spokesperson for owner Equistone said: “Equistone has been a supportive majority shareholder to Gaucho Group since its investment in 2016, working closely with the company to address the challenges presented by the adverse trading conditions that have negatively impacted the UK casual dining sector as a whole.
“Despite Equistone having presented Gaucho’s lenders with, and committed to funding, a business plan that would have maintained the company as a going concern, we understand that a notice of intention to appoint administrators has been submitted.”
