Barburrito, the Mexican eatery, has secured its future through an administration sale securing new investment in the business.
Barburrito chairman Graham Turner leads a new investment in the business, alongside other private investors, backing the existing management team of Morgan Davies, founder and CEO and Steve Herring, finance director.
The deal protects 14 stores and over 270 jobs via a corporate restructure, which has been led by restructuring specialists RSM.
Davies said: “I am delighted that we have secured the future of Barburrito, just ahead of our 15th birthday. The last few months have been extremely challenging for the whole sector. The high street is changing fast and my heart goes out to all those affected.
“Despite this, we have done really well in the stores that have remained open and, in particular, we have demonstrated the success of our delivery offering.”
He added: “In common with many in our sector, the closures and liabilities accrued during lockdown have resulted in us having to restructure the business.
“However, with the new investment, support of our landlords and the hard work of our fantastic teams, Barburrito is now well positioned to succeed in this new landscape.”
Damian Webb, partner at RSM Restructuring Advisory, said: “The coronavirus pandemic has presented a huge range of challenges for the casual dining sector. This transaction demonstrates that investors will back strong management teams with a sound underlying business model.
“Importantly this transaction is a positive outcome for the 270 employees, suppliers and landlords. Significantly in an unprecedented week for UK retail it keeps open a key asset for many high streets and retail centres.”