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Restaurant chain closes its Cau businesses

The North West based Gaucho restaurant chain has hit trouble
The North West based Gaucho restaurant chain has hit trouble

Restaurant chain Gaucho has fallen into administration, with all 22 of its Cau restaurants set to close, leading to the immediate loss of 540 jobs.

The administrators at Deloitte have said the 16 Gaucho sites will remain open while a buyer is sought for that part of the business.

Cau has experienced falling sales for three years, and is now making significant losses, but the Gaucho business is still profitable.

Matt Smith, joint administrator at Deloitte, 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 under-performance.

“As such, the decision has been made to close this loss-making part of the group with immediate effect, unfortunately resulting in today’s redundancies.”