Argentine steak restaurant Gaucho set to crash into administration
Jobs at Gaucho's flagship restaurant on St Andrew Square could be at risk as the company looks set to fall into administration
The steak restaurant chain looks set to crash into administration after its lenders opted not to pursue a rescue deal.
1,500 jobs are at risk following the predicted collapse of the group, with jobs at their St Andrew Sq restaurant at risk, as well as jobs at CAU in Glasgow and the Capital.
A number of jobs at restaurants owned by the company are also at risk across Scotland and UK.
According to reports, the company has filed a notice of intention to appoint Deloitte as its administrator.
Sources close to the company said it could fall into administration as soon as Wednesday afternoon.
It is understood that all of the rescue options have been rejected by the current syndicate behind the group.
Gaucho is set to become the latest casualty of a grim year for the high street with stores such as Poundworld, Maplin and Toys R Us all experiencing difficulties.
In total, 16 Gaucho restaurants are at risk but are seen as “viable business” from the administration. The loss-making CAU-branded chain is likely to close.
It was reported owed a seven-figure tax bill to HMRC.
In a statement issued in response to an enquiry from Sky News, a Gaucho spokesman said: “Despite an extensive options process which attracted proposals from a number of 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.”
Gaucho recently appointed a new management team in an attempt to stabilise its financial performance, although it has limited experience of the restaurant sector.