Gaucho creditors owed at least £63m

Documents filed with Companies House show Gaucho owed creditors £63m when it went into administration earlier this year.

Staff wages and holiday pay are listed as preferential creditors with liabilities to the tune of £1.3m; while the estimated deficiency as regards creditors is listed as £63m. The sum includes creditors of the group's more informal CAU brand, which had been loss-making and was closed by administrators.

Meetings of the company's members and creditors have been convened for 19 September and creditors and landlords have been notified of the group's CVA proposals which, if approved, are expected to secure the future of all 16 Gaucho restaurants and 750 employees.

When the group fell into administration, administrator Matt Smith from Deloitte said the CAU brand "struggled in the oversupplied casual dining sector"; but added that Gaucho "continues to trade well in its market segment, is profitable and has a strong underlying brand and guest loyalty".

International banking and finance groups SC Lowy and Investec acquired the restaurant group earlier this month as a new conglomerate, Lomo Bidco. The sale is expected to be completed in mid-October.

Chief executive Oliver Meakin also left the company after less than a year in the role. M Restaurants founder Martin Williams is set to return to the group to work with stakeholders and drive the next stage of Gaucho's development.

Gaucho sold to lenders as Martin Williams returns to brand to drive development >>

M Restaurants makes second bid to purchase Gaucho after collapse >>

Cau branches closed with immediate effect by Gaucho Group administrators >>

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