Threat to top steak restaurants
TWO steak restaurants in Birmingham city centre are at risk of closure after their owner filed a notice to appoint administrators.
Gaucho operates a restaurant off Colmore Row and a sister site called Cau in Brindleyplace.
The group, which has restaurants across the country, has filed a notice to appoint financial services firm Deloitte as administrator, putting 1,500 jobs at risk.
The move comes after it failed to agree a sale of the business.
The new filing will give Gaucho protection from its creditors for a ten-day period but it is expected to fall into administration soon.
It is possible that the Gaucho chain, which has 16 restaurants, could be salvaged from administration, with the 22 Cau restaurants closed for good.
A spokesman for Gaucho said: “Despite an extensive 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 under-performance at Cau and the level of indebtedness, the directors have been unable to find an agreed, solvent solution.”
Gaucho is the latest in a string of business to face strain on the high street.
Around 50,000 jobs have been axed in the first half of the year as retail workers bore the brunt of hundreds of store closures.
Among the high-profile casualties are House of Fraser, Toys R Us and Maplin.