Dubai restaurant Gaucho to remain open as UK business plunges into administration
Popular DIFC steakhouse unaffected by British subsidiary's financial troubles, spokesman says
Dubai's popular Gaucho restaurant will continue to trade despite news that the UK subsidiary has filed for administration.
A spokesman said it was "business as usual" at Gaucho DIFC and that the popular steakhouse is part of the group's international properties, which are not affected.
Gaucho directors in the UK had been in talks with a number of interested parties but to no avail.
The group has now filed a notice of intent to appoint an administrator, a process that gives them 10 days’ protection from creditors.
Marketing manager Matt Ford said “in terms of Gaucho DIFC, it is absolutely business as usual".
"The administration is of the UK businesses and not of the international business, which does not come under the same legal structure."
The group has been running an options process with advisers KPMG since mid-May to find a way to the challenging financial situation facing the business.
“Despite strong interest from a number of parties, the complexities of the legal structure, the ongoing challenges with performance and the level of indebtedness, has meant that the brand has been unable to find a solvent solution,” said Mr Ford.
“Consequently, the directors have filed in court a notice of intention to appoint an administrator for the business. This is the first step that the directors are obliged to take ahead of an administrator being appointed.”
He added that the administrators are likely to be Partners of Deloitte.
“Until such time as the administrator has been appointed and agreed plans with management, is it very much business as usual for both Gaucho and CAU businesses,” he said.
Gaucho employs 800 staff across its 16 branches. The Argentinian-themed restaurant opened in Dubai in 2011.
News of Gaucho’s financial difficulties reflects a global trend moving away from casual dining to takeaways and supermarkets. A slowdown in consumer spending has also contributed to the current market conditions.
Updated: July 19, 2018 05:49 PM