Chilango to appoint administrators
Chilango, the Mexican restaurant chain with 12 sites principally in London, has announced it intends to appoint administrators in a matter of days.
Restructuring advisory firm RSM is set to launch a sales process of the business due to the impact the coronavirus crisis has had on the company. The founders of the company, Eric Partaker and Dan Houghton, will not be purchasing the company out of administration.
A message sent to shareholders said: "During this period, we have done our very best to mitigate the pandemic's impact, operating as much as is safely possible, while implementing the various government support measures available. Unfortunately, these efforts have not been sufficient to secure the future of our business."
Prior to the pandemic Chilango was on track to deliver a budgeted group EBITDA (earnings before interest, tax, depreciation and amortisation) of over £800,000. The group's creditors approved a Company Voluntary Arrangement (CVA) in January, after accounts made up to 25 March 2018 for parent company Mucho Mas revealed a loss of £1.4m.