Gaucho restaurant group goes into administration with a loss of 540 jobs

The  Staff Canteen

The Staff Canteen

Editor 19th July 2018

Gaucho restaurant group to close 22 Cau branches with 540 jobs lost.

Gaucho, the restaurant chain that specialises in Argentinian steak has announced that they are to close all 22 of their Cau branches with the loss of 540 jobs. 

The group which has 39 restaurants made up of 22 Cau branches and 16 Gaucho restaurants throughout the UK (as well as one branch in Amsterdam) have fallen into administration. Deloitte have said that the closures will result in approximately 540 redundancies. They also revealed that buyers will be sought for the former spaces occupied by Cau, but that the Gaucho brand is still profitable. All Gaucho branches will continue to trade as normal.

Deloitte's Matt Smith, acting as joint administrator, commented: “Unfortunately the Cau brand has struggled in the oversupplied casual dining sector with rapid over-expansion, poor site selection, onerous lease arrangements and a fundamentally poor guest proposition all being factors in its underperformance."

"As such, the decision has been made to close this loss-making part of the group with immediate effect, unfortunately resulting in today’s redundancies."

He continued: “The Gaucho business on the other hand, which operates in the premium dining market, continues to trade well in its market segment, is profitable and has a strong underlying brand and guest loyalty. We are taking steps to stabilise the business following our appointment and are now seeking expressions of interest in terms of a sale of the Gaucho business. We appreciate the support of the group’s colleagues and management team and other key stakeholders in achieving this aim.”

Citing the "ongoing underperformance" of Cau as a factor, a spokesman from Gaucho when speaking to Sky News said:

“Despite an extensive options process which attracted proposals from several 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."

The news of Gaucho follows several high-profile restaurant chains that have closed or are facing closure including the likes of Prezzo, Jamie’s Italian and Carluccio’s.

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The  Staff Canteen

The Staff Canteen

Editor 19th July 2018

Gaucho restaurant group goes into administration with a loss of 540 jobs