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| Gaucho restaurant chain collapses | Gaucho restaurant chain collapses |
| (35 minutes later) | |
| About 1,500 jobs are at risk after the Gaucho restaurant chain said it intended to appoint administrators. | About 1,500 jobs are at risk after the Gaucho restaurant chain said it intended to appoint administrators. |
| Advisors to the business had been trying to find a buyer for the 16 restaurants and its sister chain, Cau. | |
| However, high debt levels and a complex legal structure meant it had been unable to find an "agreed, solvent solution", a spokesperson said. | However, high debt levels and a complex legal structure meant it had been unable to find an "agreed, solvent solution", a spokesperson said. |
| The "ongoing underperformance" of Cau, which has been under threat since May, had also been an issue, the firm said. | |
| Directors have filed notice of intention to appoint administrators for the business, which is owned by the private equity firm Equistone. | |
| "Until such time as the administrator has been appointed and agreed plans with management, it is business as usual," its statement said. | "Until such time as the administrator has been appointed and agreed plans with management, it is business as usual," its statement said. |
| Equistone backed a management buyout of Gaucho in 2005 and the business was sold to private equity firm Phoenix the following year with a return of 2.5 times its original investment. | |
| Equistone then took control of the Gaucho Group again in January 2016. | |
| Cau, described by Equistone as an "aspirational casual dining chain", was launched in 2010 and has 16 UK restaurants and one in Amsterdam. | |
| Gaucho, which specialises in Argentinean steaks and fine wine, has 12 restaurants in London, with another four in Leeds, Manchester, Dubai and Hong Kong. | |
| It is the latest restaurant chain to suffer as consumers change their spending patterns. | |
| Prezzo, Jamie's Italian and Byron and Carluccio's are among those that have announced plans to close some outlets this year. |