Gaucho group’s Company Voluntary Agreement (CVA) has been approved by the majority of its creditors, with over 90% voting in favour of the scheme, however there is a 28 day challenge period which may challenge the terms of the agreement.
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.”
Earlier this month administrator Deloitte announced the departure of chief executive Oliver Meakin, the brand’s 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, presented a proposal to acquire the group in late 2017, however 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.