750 jobs saved as restaurant chain Gaucho secures rescue deal
Around 750 jobs are to be saved as restaurant chain Gaucho is being to be bought out of administration.
Investec Bank and SC Lowy, which are also Gaucho’s lenders, are planning to acquire the Argentinian-themed chain’s 16 restaurants, including the restaurant on Park Row, Leeds.
Lomo Bidco Limited, a new vehicle created and owned by Investec and SC Lowy, will complete the acquisition conditional on the implementation of a Company Voluntary Arrangement (CVA) of Gioma (UK) Limited, the legal entity operating the Gaucho business.
The CVA is being launched Wednesday 5 September, and is a necessary step to exit Gioma from administration.
Oliver Meakin, CEO of Gaucho, has also announced that he is stepping down from the company now that the future of the business has been secured under new owners.
Martin Williams, CEO and founder of the group of M branded drinking and dining venues, will be working with the key stakeholders in the next stage of Gaucho’s development.
Matt Smith, partner at Deloitte LLP, said: “We are delighted Investec and SC Lowy have agreed to purchase Gaucho, which offers the best outcome for all parties. Gaucho is a profitable and successful business and with the support of its new owners can now focus on its future growth plans.”
A spokesman for Investec added: “We have supported Gaucho since 2016 and continued to provide support to the business through the difficult conditions experienced in 2018. We know the Gaucho team well and have significant confidence they can reinvigorate and grow the Gaucho brand.
“In light of this we have acted in conjunction with SC Lowy to ensure the survival of Gaucho. We believe the creditor group will support the necessary CVA allowing Gaucho shortly to exit administration so we can take the business forward.”
Oliver Meakin, CEO of Gaucho, also said: “This is a fantastic outcome for Gaucho and particularly for our exceptional colleagues. I would also like to thank all of our suppliers and guests for their continued support throughout this challenging process, which is a testament to the strength of the Gaucho brand.
“Gaucho is synonymous with special occasion dining, creating genuinely memorable experiences for guests I am confident that Gaucho has an exciting future ahead and wish the team the very best.”
The sale is expected to complete in mid-October following approval of the CVA.
