Administrators on standby for Gaucho restaurant chain

GAUCHO Group is on the verge of administration after its owners failed to strike a deal with lenders to keep the company solvent, putting 1,500 jobs at risk.

The company, which has 16 Gaucho restaurants and 22 Cau sites, has filed notice of its intention to appoint administrators, after Equistone, its private equity owner, failed to reach an agreement with creditors.

The operator of the Argentinianthemed steak restaurants drafted in KPMG, the accountancy giant, to help it assess the future of the Cau chain, including a company voluntary arrangement (CVA), and an offer from Equistone to buy creditors’ debt stakes, but was unable to reach an agreement, according to a person close to the matter. The company also sought buyers for the business, to no avail. The directors of the company were therefore forced to give notice of its intention to appoint Deloitte as its administrator.

A Gaucho spokesman 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.”