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| Gaucho restaurant group collapses with 1,500 jobs at risk | Gaucho restaurant group collapses with 1,500 jobs at risk |
| (about 2 hours later) | |
| About 1,500 jobs are at risk after the Gaucho restaurant group said it intended to appoint administrators. | About 1,500 jobs are at risk after the Gaucho restaurant group said it intended to appoint administrators. |
| The firm's advisors had been trying to find a buyer for the 39 restaurants in the Gaucho and Cau chains. | |
| 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, Gaucho said. | The "ongoing underperformance" of Cau, which has been under threat since May, had also been an issue, Gaucho said. |
| Directors have filed notice of intention to appoint administrators for the business, which is owned by the private equity firm Equistone. | 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. |
| Cau, described by Equistone as an "aspirational casual dining chain", was launched in 2010 and has 22 restaurants. | Cau, described by Equistone as an "aspirational casual dining chain", was launched in 2010 and has 22 restaurants. |
| Gaucho, which specialises in Argentinean steaks and fine wine, has 12 restaurants in London, with others in Birmingham, Leeds, Manchester, Edinburgh, Dubai and Hong Kong. | |
| They have become the latest restaurant chains to suffer as consumers change their spending patterns. | They have become the latest restaurant chains 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. | Prezzo, Jamie's Italian and Byron and Carluccio's are among those that have announced plans to close some outlets this year. |
| 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 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 Gaucho again in January 2016. | Equistone then took control of Gaucho again in January 2016. |
| A spokesperson for Equistone said it had presented Gaucho's lenders with a "business plan that would have maintained the company as a going concern". | A spokesperson for Equistone said it had presented Gaucho's lenders with a "business plan that would have maintained the company as a going concern". |
| It is understood that lenders to Gaucho rejected an Equistone proposal to put the Cau chain into a form of administration known as a Company Voluntary Arrangement (CVA), as well as taking on their debt. | It is understood that lenders to Gaucho rejected an Equistone proposal to put the Cau chain into a form of administration known as a Company Voluntary Arrangement (CVA), as well as taking on their debt. |
| That rejection forced Gaucho's directors to put the the company into administration due to the lack of any other funding options. | That rejection forced Gaucho's directors to put the the company into administration due to the lack of any other funding options. |