Approved CVA paves the way for Gaucho sale
Gaucho group's Company Voluntary Agreement (CVA) has been approved by 99% of its creditors, paving the way for its sale to international banking and finance groups SC Lowy and Investec.
SC Lowy and Investec will acquire the restaurant group as a new conglomerate, Lomo Bidco, with the sale expected to be completed in mid-October.
Matt Smith, partner at Deloitte LLP, said: "The vote in favour of the CVA paves the way for Investec and SC Lowy to complete their purchase of Gaucho. We are pleased that creditors have recognised that the CVA proposals put forward offer the best possible outcome for all parties.
"Gaucho remains a strong brand and a profitable, successful business. It can now focus on its future growth plans with the support of its new owners and operators."
The agreement secures the future of 16 Gaucho restaurants and 750 jobs.
Earlier this month administrator Deloitte announced the departure of chief executive Oliver Meakin after less than a year in the role. In the absence of Meakin, M Restaurants' founder Martin Williams will return to the group to work with stakeholders and drive forward the next stage of Gaucho's development.
Williams, who served as managing director of Gaucho before departing to establish M Restaurants in 2014, put forward a proposal to acquire the group in late 2017, but it was rejected by majority shareholder Equistone. He is understood to have made a second bid following the group's fall into administration.
The Gaucho Group closed 22 Cau branches after falling into administration in July, but its 16 Gaucho restaurants continued to trade while a buyer was sought.
Deloitte said the Cau brand was "significantly loss-making", having suffered negative like-for-like sales for three years. Its collapse resulted in 540 redundancies.
Gaucho sold to lenders as Martin Williams returns to brand to drive development>>
Cau branches closed with immediate effect by Gaucho Group administrators>>
