Mexican restaurant chain Chilango is set to give notice of its intention to appoint administrators, putting more than 150 jobs at risk.
The company is understood to be working with business advisory firm RSM on a sale after reports suggested its founders Eric Partaker and Dan Houghton had ruled themselves out of buying the business out of administration.
In an email sent to shareholders yesterday, the chain said it had done its very best to mitigate the pandemic’s impact, but the efforts had not been sufficient to secure the future of the business.
Chilango previously raised almost £6m from a crowdsourcing initiative that saw around 1,500 investors buy ‘Burrito Bonds’.
High-profile names to buy into the offer included Chris Moore, former CEO of Domino’s Pizza UK, David Haimes, ex-managing director at Itsu and Laurie Morgan, who previously served as UK marketing vice-president of McDonald’s UK.
At the start of last year, the business had described how it was looking to take advantage of the number of vacant property locations coming to market in London.
The chain said it had identified a number of “attractive” sites in several high footfall locations and was looking to add to the 10 locations it already operates.