Restaurant chain Gaucho is poised to be bought out of administration after two of its lenders indicated they are prepared to come to its rescue.
Investec Bank and debt specialist SC Lowry, who were reportedly owed about £50m by Gaucho’s parent Gioma, are working on a deal that would see them acquire all 16 Gaucho restaurants, saving 750 jobs.
The agreement is based on Gaucho’s creditors accepting a ‘CVA’ that is due to be voted on later this month. If they give it the green light the buyout could be finalised by mid-October.
Gaucho chief executive Oliver Meakin is set to step down from the business following the sale, with reports suggesting that he will be replaced by Martin Williams, the chief executive and founder of M Restaurants and a former MD of Gaucho.
Earlier this year, Mr Williams revealed he had attempted to buy the Argentinean steak chain prior to it entering administration in July when its sister brand Cau collapsed.
It resulted in the immediate closure of all 22 Cau restaurants, with the loss of 540 jobs.