Cherry Equity rescues Gusto from administration, 190 redundancies expected
The majority of redundancies will come from smaller sites in suburban locations, which have become 'economically unviable'
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Cherry Equity Partners is set to acquire the majority of Italian chain Gusto following the appointment of administrators and a pre-pack administration process, with almost 200 redundancies expected.
The deal will see seven flagship Gusto restaurants continue to trade, in a move that safeguards over 300 jobs.
Six restaurants will close however, resulting in around 190 redundancies. The majority of these will come from smaller sites in suburban locations, which have become “economically unviable due to continuing cost headwinds affecting the sector”.
Paul Moran, CEO of Gusto Restaurants, said: “This investment marks an important step forward for Gusto, ensuring the future of the business and putting in place a strong and stable platform upon which we can start to grow the business again.
“We are profoundly sorry to see six of our restaurants close and are tremendously grateful for the support of our staff and our loyal customers at these locations over the years.”
Ed Standring, CEO and operating partner of Cherry Equity Partners, said: “This investment marks our third acquisition in six months, and underscores our deep commitment to the UK hospitality sector. Cherry is an operator-led sector specialist. This is an industry we’re incredibly passionate about and one we believe is full of opportunity.
Jamie Barber, chairman and founding partner of Cherry Equity Partners, added: “Gusto is a well-loved brand with a great heritage, and we’re looking forward to working with Paul and the team to invest and grow the business.”
The transaction is being led by Will Wright and Rick Harrison from Interpath Advisory, who are expected to be appointed joint administrators to Gusto Restaurants Limited.
Wright said: “Although these continue to be challenging times for hospitality operators, we are pleased to advise on this transaction which will safeguard the future of a fantastic brand which has been serving customers across cities and suburbs for over twenty years.”
