More than 500 restaurant workers lost their jobs after the restaurant group Gaucho called in the administrators.
Accountants from Deloitte appointed joint administrators to the owner of the Gaucho chain, Cau. Said KAU Deloitte, which has 22 outlets in the UK and employs 540 people, will close immediately until 16 outputs Gaucho – the more upmarket the brand group will continue to trade while administrators seek a buyer.
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Still have 765 staff working in restaurants Gaucho and the head office, whose jobs may be at risk if a buyer cannot be found.
Deloitte made a blunt assessment of the shortcomings of the Kaw. Matt Smith, joint administrator, said: “unfortunately, the brand KAU fought last Friday casual sector with fast perenashivanie, poor choice of location, onerous leases and fundamentally poor evaluation of the proposal. As such, the decision was made to close this unprofitable part of the group with immediate effect, unfortunately, the result of today’s layoffs”.
Smith also noted that steps are being taken to stabilize the chain Gaucho, as it sought expressions of interest in the buyout. He said that the network “continues to trade in its market segment, is profitable and has a strong brand and loyalty of the guest.”
Gaucho is the latest in a number of high-street dining chains to run into trouble amid pressure on consumer spending and perenashivanie working for private investors. Off-road vehicle / pickup truck, Byron and Jamie’s Italian have closed outlets and cut hundreds of jobs, and the company is veteran restaurateur sir Terence Conran and Conran Prescott was named last month to the administrators.
Private equity firm Equistone bought a group of Gauchos in January 2016, said earlier this week that he has put forward a rescue plan financed by the creditors of the restaurant.
The business looked at a number of ways of restructuring, but face a crisis when he faced taxes of more than 1 million pounds, which should be paid last Friday. The company also owed 50 million pounds on its shores.
Restaurants and retailers are under pressure from rising business rates, the minimum cost of wages and food prices, and slowing growth in consumer spending as inflation outpaces wage growth.
On Thursday, administrators Poundworld said that all the shops and warehouses were close to 10 August, with the loss of over 1,600 jobs. Almost 80 shops and warehouses will be close to 29 July, the last 112 of shops shutting in the next week.
Administrators have already announced the closing 145 stores with loss of nearly 1,800 jobs, since they were named last month. Negotiations are continuing about the possibility of selling part of the remaining business.
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