Restaurant chain Gaucho is preparing for sale after 99% of its creditors approved a company voluntary arrangement (CVA) proposal.
The news was confirmed by Deloitte, the administrators for Gioma, the legal entity operating as Gaucho. The CVA, which was launched 5 September, will save Gioma from administration and enable the sale of the Gaucho restaurants business to Lomo Bidco a new company created and owned by the restaurant’s creditors, Investec Bank plc and SC Lowy.
It will also enable Lomo Bidco to take the business forward in its existing legal entity without its liabilities before entering administration. The sale is expected to be completed in mid-October and will see Lomo Bidco acquire 16 outlets.
Matt Smith, partner at Deloitte LLP, said: “The vote in favour of the CVA paves the way for Investec and SC Lowy to complete their purchase of Gaucho. We are pleased that creditors have recognised that the CVA proposals put forward offer the best possible outcome for all parties. Gaucho remains a strong brand and a profitable, successful business.
“It can now focus on its future growth plans with the support of its new owners and operators.”