Embattled restaurant chain Gaucho has been sold saving over 700 jobs and preventing the the company from falling into administration.
Deloitte, the appointed administrators for Gaucho, announced the chain had been purchased by newly created company Lomo Bidco – established by Gaucho’s lenders, Investec Bank and SC Lowy. Some 22 outlets under the restaurant’s sister brand Cau were shuttered in July as it was described as Deloitte as “significantly loss-making”.
Lomo Bidco will acquire the chain’s 16 UK restaurants, securing the future of its circa 750 employees and all sites, conditional on the successful implementation of a company voluntary arrangement (CVA) of the chain’s parent company Gioma. The CVA was launched on Wednesday 5 September.
Oliver Meakin, Gaucho CEO, has announced that he is stepping down from the company. Martin Williams, CEO and founder of the M Restaurants, will be working with the key stakeholders to drive the next stage of the chain’s development. The sale is expected to complete in mid-October following approval of the CVA.
Matt Smith, partner at Deloitte, said: “We are delighted Investec and SC Lowy have agreed to purchase Gaucho, which offers the best outcome for all parties. Gaucho is a profitable and successful business and with the support of its new owners can now focus on its future growth plans.”
A spokesman for Investec added: “We have supported Gaucho since 2016 and continued to provide support to the business through the difficult conditions experienced in 2018. We know the Gaucho team well and have significant confidence they can reinvigorate and grow the Gaucho brand.
“In light of this we have acted in conjunction with SC Lowy to ensure the survival of Gaucho. We believe the creditor group will support the necessary CVA allowing Gaucho shortly to exit administration so we can take the business forward.”
Oliver Meakin, CEO of Gaucho said: “This is a fantastic outcome for Gaucho and particularly for our exceptional colleagues. I would also like to thank all of our suppliers and guests for their continued support throughout this challenging process, which is a testament to the strength of the Gaucho brand.”