1,500 jobs at risk as restaurants on verge of collapse

Restaurant chain Gaucho is on the verge of collapse, putting 1,500 jobs at risk.

A notice of intention to appoint administrators has been filed, which gives the company a short window to complete a deal and prevent other winding-up action.

Gaucho also operates the Cau restaurants, which has been seeking a rescue deal since May.

However a combination of “the complexities of the Group’s legal structure, ongoing underperformance at CAU and the level of indebtedness” have been blamed for no deal being completed.

Cau in Brindleyplace, Birmingham

Gaucho said: “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.”

Gaucho has 16 restaurants, including a site in St Mary’s Street, Manchester.

Cau has 23 sites, including at Media City, Salford, Didsbury, Wilmslow, and Liverpool.