Gaucho has announced it has closed its Cau chain, cutting 540 jobs as it enters a Company Voluntary Agreement (CVA).
Deloitte has been appointed by the steak firm to lead the firm through the administration process. Cau was described by Deloitte as “significantly loss-making” after three consecutive years of falling sales.
The company confirmed it was shutting all 22 Cau restaurants in order to focus on selling the Gaucho brand. The CVA process has been launched just a day after the company filed its intention to appoint administrators.
Deloitte administrator Matt Smith said: “Unfortunately the Cau brand has struggled in the oversupplied casual dining sector with rapid over-expansion, poor site selection, onerous lease arrangements and a fundamentally poor guest proposition all being factors in its underperformance.
“The Gaucho business on the other hand, which operates in the premium dining market, continues to trade well in its market segment, is profitable and has a strong underlying brand and guest loyalty.
“We are taking steps to stabilise the business following our appointment and are now seeking expressions of interest in terms of a sale of the Gaucho business.”