The Gaucho restaurant chain has announced today that there is a high chance that the group will fall into administration, with around 1,500 jobs being at risk.
Gaucho is currently owned by private equity firm Equistone and operate 16 restaurants in the UK and three overseas in Hong Kong, Dubai and Buenos Aires.
The tipping point for the struggling restaurant group was reportedly a tax demand from HMRC of more that £1m. Sky News has reported that Gaucho have filed a notice of intention of appointing Deloitte as its administrator.
The BBC has stated that the company has tried to find a buyer, however because of a complex legal structure and high debt they weren’t able to find an 'agreed, solvent solution'. As such they have opted not to pursue a rescue deal.
This course of action would give them a relief of ten days from creditors, however Sky News presented that the company could possibly fall into administration as early as Wednesday afternoon.