The Gaucho groups looks to be falling into administration over an unpaid tax bill, it has been reported on Sky News.
Gaucho, which employs 1,500 people across its 16 UK sites, has filed a notice of intention to appoint Deloitte as its administrators. While this gives Gaucho 10 days it looks likely this could be formally confirmed as early as Wednesday, July 25.
The company was given until July 13 to pay a £1m bill from HMRC which it was unable to do. Up until yesterday it was trying to find a buyer or investor to cover the costs.
On Monday the group was still optimistic with a spokesperson saying ‘we remain confident that the Gaucho business will emerge from this process on a more stable footing.’
Gaucho has decided to close all 22 sites of its casual spin-off chain Cau in an effort to keep its Gaucho restaurants afloat, leaving 540 Cau employees jobless.
‘Unfortunately the Cau brand has struggled in the oversupplied casual dining sector with rapid overexpansion, poor site selection, onerous lease arrangements and a fundamentally poor guest proposition,’ commented joint administrator Matt Smith.
‘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.’
Meanwhile, the restaurant group continues to look for a buyer for its 16 Gaucho sites.