Cherry Equity Partners Rescues Gusto Chain Through Pre-Pack Administration
Cherry Equity Partners has completed the acquisition of Italian restaurant chain Gusto through a pre-pack administration process, securing the future of seven locations while unfortunately resulting in the closure of six sites.
The deal, orchestrated by administrators Interpath Advisory, will preserve employment for over 300 staff members across the retained restaurants. However, approximately 190 positions will be lost due to the closure of the economically challenged locations.
The investment firm, led by hospitality industry veterans Ed Standring and Jamie Barber, has identified the seven strongest performing sites for continuation. The six closing locations were predominantly smaller, suburban establishments that had become financially unsustainable due to mounting operational costs affecting the wider hospitality sector.
Paul Moran, Gusto Restaurants CEO, said:
“This investment marks an important step forward for Gusto, ensuring the future of the business and putting in place a strong and stable platform upon which we can start to grow the business again.”
Ed Standring, CEO and operating partner of Cherry Equity Partners, said:
“This investment marks our third acquisition in six months, and underscores our deep commitment to the UK hospitality sector.
“Cherry is an operator-led sector specialist. This is an industry we’re incredibly passionate about and one we believe is full of opportunity.”
Jamie Barber, chairman and founding partner of London-based Cherry Equity Partners, said: “Gusto is a well loved brand with a great heritage, and we’re looking forward to working with Paul and the team to invest and grow the business.”
This transaction represents Cherry Equity Partners’ third major acquisition in 2025, demonstrating their continued confidence in the UK restaurant sector. Earlier this year, the firm acquired Latin American restaurant group Cabana in January, followed by the purchase of French-themed chain Bistrot Pierre in March.
Gusto’s journey began in 2005 when it was established by Jeremy Roberts and the late Tim Bacon, both co-founders of the Living Ventures Group. The chain built a strong following over nearly two decades, becoming known for its Italian-inspired cuisine and atmosphere.
In 2014, private equity firm Palatine invested significantly in the business, providing funding for an ambitious expansion programme that saw the chain grow across various UK locations.
However, like many hospitality businesses, Gusto faced severe challenges during the 2020 pandemic. The company entered a Company Voluntary Arrangement (CVA) that year, which successfully protected over 600 jobs but necessitated the closure of four locations. At that time, management described the restructuring as positioning the business for future growth with improved financial stability.
Will Wright, UK CEO of Interpath, said:
“Although these continue to be challenging times for hospitality operators, we are pleased to advise on this transaction which will safeguard the future of a fantastic brand which has been serving customers across cities and suburbs for over 20 years.”.