Steak chain Gaucho puts more than 700 jobs at risk with talks to close Cau restaurants
Gaucho, the Argentine steak chain, is reportedly putting more than 700 UK jobs at risk as it is considering the closure of its steak and burger chain Cau.
As reported by Sky News, the restaurant group is looking at several options, including a Company Voluntary Arrangement (CVA) which would allow the chain to be restructured.
If the group proceeds with the CVA, which would require the approval of landlords and other creditors, it could result in the closure of all 22 Cau restaurants across the country.
Cau, which specialises in serving Buenos Aires-themed dishes, has reportedly experienced a double-digit decline in sales over the past year.
The 16 Gaucho restaurants, however, are said to be trading well and remain unaffected by these potential closures.
Equistone, the private equity firm, purchased the Gaucho group back in January 2016.
A spokesperson for the group, said: “As part of a comprehensive strategic review, the group’s new management team, with the support of its shareholders, is at the early stages of exploring a number of financial restructuring options.
“No decisions have yet been made.”
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