Gaucho Grill Limited (00093289): administration
- Status
- Administration ended
- Administration began
- 2018-07-19
- Administrators
- Robert James Harding, Matthew David Smith
- Administrators' firm
- Deloitte
- Formerly
- Gaucho Grill PLC; Gioma Restaurants PLC; Parambe P.L.C.
- Incorporated
- 1907-05-08
- Location
- Birmingham
- Industry
- 56101 Licenced restaurants
Why it went into administration
- Sustained trading losses
- Rising costs / inflation
- Property / lease costs
- Funding withdrawn / unable to refinance
From the administrators' statement
The Gaucho brand operated by Gioma has proved successful since the Group was acquired by Equistone, generating EBITDA of £8.0m (17.2% margin) in 2016 and £5.7m (11.6% margin) in 2017. This was in part driven by successful site openings outside of London (Birmingham and Edinburgh).
However the first six months of 2018 were s challenging for the Gaucho brand. Whilst revenue was up 2.2% on 2017, wider cost pressures facing the restaurant sector, including an increase in business rates, rising food prices, and the introduction of the National Living Wage, meant that restaurant EBITDA margin reduced from 28.1% to 21.4%.
In respect of CAU, significant underperformance resulted from a number of factors including high operative costs and wider challenges in the sector in which it operated. As a result, EBITDA generated by the CAU brand fell from £2.9m to £1.7m between 2016 and 2017 despite site numbers remaining constant at 22. In the first six months of 2018, sales were 17.2% behind the same period in 2017. Due to the ongoing losses in CAU, CAU was unable to pay all of its liabilities as they fell due.
Administrators' statement of proposals (2018-09-16) · Companies House register