Investec Bank and SC Lowy have created a new vehicle called Lomo Bidco Limited through which they will acquire the restaurant chain, administrator Deloitte has confirmed.

The sale of the company has been made through a Company Voluntary Arrangement (CVA) so that the liabilities of Gaucho’s sister restaurant CAU, which collapsed in July with the loss of 540 jobs, are not carried over.

A spokesman for Investec said: ‘We have supported Gaucho since 2016 and continued to provide support to the business through the difficult conditions experienced in 2018. We know the Gaucho team well and have significant confidence they can reinvigorate and grow the Gaucho brand.

‘In light of this we have acted in conjunction with SC Lowy to ensure the survival of Gaucho.  We believe the creditor group will support the necessary CVA allowing Gaucho shortly to exit administration so we can take the business forward.’

Current Gauchp CEO, Oliver Meakin, has announced that he is stepping down from the company now that the future of the business is secured. Martin Williams, CEO & founder of the group of M branded drinking and dining venues, will be working with the key stakeholders to drive the next stage of Gaucho’s development. 

Meakin said: ‘This is a fantastic outcome for Gaucho and particularly for our exceptional colleagues. I would also like to thank all of our suppliers and guests for their continued support throughout this challenging process, which is a testament to the strength of the Gaucho brand.’

The sale is expected to complete in mid-October following approval of the CVA.

Report by Amy Austin