Business

Chilango set to call in administrators

Mexican fast food chain Chilango is reportedly set to call in administrators, potentially putting 152 jobs at risk of redundancy.

According to The Guardian, the move could lead to the closure of Chilango’s 12 restaurants located in London, Manchester and Birmingham.

Further to this, investors who contributed to the group’s ‘Burrito Bond’ scheme now risk losing millions if the chain does collapse, the Guardian reported.

Some 1,000 investors purchased mini-bonds worth around £5.8m over the course of two fundraising efforts – with the scheme promising returns of 8% each year.

However, the group warned last year that if the chain does collapse, investors would be reliant on the returns from asset sales – which could lead to a 99% loss of their investment.

Chilango was founded in 2007 by Partaker and Dan Houghton, both former employees of the global tech giant Skype.

Catering Today has contacted Chilango for comment.

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