Gaucho Group shuts down CAU restaurant chain
The sites were closed due to falling sales.
At the decision of administrators at Deloitte, the Gaucho Group will let go 540 of its staff members closing down its 22 UK CAU restaurants.
CAU, according to the administrators, have incurred significant losses for the group after reporting three years of falling sales.
Gaucho sites will resume trading as usual while the administrators are looking for a buyer for the business.
Matt Smith, joint administrator, said: “Unfortunately the CAU brand has struggled in the oversupplied casual dining sector with rapid over-expansion, poor site selection, onerous lease arrangements and a fundamentally poor guest proposition all being factors in its underperformance.”
“The Gaucho business on the other hand, which operates in the premium dining market, continues to trade well in its market segment, is profitable and has a strong underlying brand and guest loyalty.”
Gaucho is a restaurant that specialises in Argentinean steaks and fine wine and is owned by the private equity firm Equistone. It has restaurants in London, Birmingham, Leeds, Manchester and Edinburgh as well as Dubai and Hong Kong.
