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Gaucho Restaurant Group Looks at Closing Casual Dining Chain

Written by: Julie Palmer

Date: Thursday 10th May, 2018

The restaurant group Gaucho is considering whether or not to close down its casual dining business Cau, which has more than 20 outlets around the country.

More than 700 jobs would be at risk if the business were to be closed, with Gaucho having called in experts from KPMG to assess potential turnaround options.

A Company Voluntary Arrangement (CVA) could now be pursued with a view to saving the business via agreements with landlords and with creditors.

According to Sky News, the CVA is only one of several potential options being considered by Gaucho and its advisors as they look for a positive route forward.

Cau is the latest in a growing list of casual dining companies that have found themselves facing the prospect of insolvency and seeking a CVA as a means of financial rescue.

Other well-known brands to have found themselves feeling the pinch financially in recent months include Prezzo, Byron, Carluccio’s and Jamie’s Italian.

A statement given on behalf Gaucho said: “As part of a comprehensive strategic review, the group’s new management team with the support of its shareholders, is at the early stages of exploring a number of financial restructuring options.”

The message from the group, whose outlets specialise specifically in Argentine cuisine and particularly in serving steaks, is that no final decision on what the future looks like for Cau has yet been taken.

Gaucho has a total of 16 other restaurants in England and Scotland that are branded as being part of Gaucho UK rather than its Cau operation, with most of them being found in various parts of London.

Those outlets are understood to be safe from the threat of closure, with some Cau restaurants potentially in line to be converted into Gaucho UK facilities.

The private equity firm Equistone acquired the Gaucho group in January 2016 for a price of £100 million.

In addition to its 16 restaurants in the UK, Gaucho also has steak houses in Hong Kong, Dubai and Buenos Aires. It was first established in the 1970s and created its first Cau casual dining outlet in 2011.

The restaurant group Gaucho is considering whether or not to close down its casual dining business Cau, which has more than 20 outlets around the country.

More than 700 jobs would be at risk if the business were to be closed, with Gaucho having called in experts from KPMG to assess potential turnaround options.

A Company Voluntary Arrangement (CVA) could now be pursued with a view to saving the business via agreements with landlords and with creditors.

According to Sky News, the CVA is only one of several potential options being considered by Gaucho and its advisors as they look for a positive route forward.

Cau is the latest in a growing list of casual dining companies that have found themselves facing the prospect of insolvency and seeking a CVA as a means of financial rescue.

Other well-known brands to have found themselves feeling the pinch financially in recent months include Prezzo, Byron, Carluccio’s and Jamie’s Italian.

A statement given on behalf Gaucho said: “As part of a comprehensive strategic review, the group’s new management team with the support of its shareholders, is at the early stages of exploring a number of financial restructuring options.”

The message from the group, whose outlets specialise specifically in Argentine cuisine and particularly in serving steaks, is that no final decision on what the future looks like for Cau has yet been taken.

Gaucho has a total of 16 other restaurants in England and Scotland that are branded as being part of Gaucho UK rather than its Cau operation, with most of them being found in various parts of London.

Those outlets are understood to be safe from the threat of closure, with some Cau restaurants potentially in line to be converted into Gaucho UK facilities.

The private equity firm Equistone acquired the Gaucho group in January 2016 for a price of £100 million.

In addition to its 16 restaurants in the UK, Gaucho also has steak houses in Hong Kong, Dubai and Buenos Aires. It was first established in the 1970s and created its first Cau casual dining outlet in 2011.

Julie Palmer

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Julie Palmer
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Julie is a vastly experienced business recovery specialist and advises directors and sole traders during times of financial insecurity. She is highly regarded across the industry and is a member of the Insolvency Practitioners Association and a Fellow of The Association of Business Recovery Professionals.

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