Argentine restaurant group Gaucho is reportedly on the verge of entering administration as it has failed to secure a rescue deal.
At the beginning of the month, the chain was reported to have three potential buyers named as Osmond Capital, Core Capital and Limerston Capital. Osmond was said to have bid less than £50 for the company.
Gaucho’s woes began when it discovered an unpaid tax bill of more than £1m and in total, the company is said to owe more than £50m to its banks. An announcement of administration would see the closure of 16 Gaucho restaurants and 22 Cau outlets, which collectively employ 1,500.
A spokesperson told Sky News: “Despite an extensive options process which attracted proposals from a number of parties, it is with regret that due to the complexities of the group’s legal structure, ongoing underperformance at CAU and the level of indebtedness, the directors have been unable to find an agreed, solvent solution.
“Consequently, the directors have today filed in court a notice of intention to appoint an administrator for the business. Until such time as the administrator has been appointed and agreed plans with management, it is business as usual.”