Failing to find new investors the Gaucho and Cau chains are set to go into administration.
After facing huge tax bills Gaucho went on the hunt to find a new buyer for the 39 restaurants. The group were given until July 13th to settle their HMRC tax demand of more than £1million but due to a complex legal structure as well as a bundle of debt the chain was unsuccessful.
The 22 restaurants of Cau which launched in 2010 have reportedly been underperforming for months meaning the loss making steakhouses are likely to close as early as Wednesday. This is blamed on a decline in casual dining.
Administrators will attempt to sell the Gaucho Group for as much as possible so some of the restaurants may remain open. Until then 1,500 jobs are at risk.
The Argentine restaurants aren’t the only chains plunging into administration with Prezzo, Jamie’s Italian and Café Rouge all set to close restaurants around the country within the upcoming months.