Almost 200 jobs have been lost at Italian restaurant chain Gusto after a deal to buy it out of administration was agreed.
Cherry Equity Partners is to acquire the majority of Gusto in a move which will lead to around 190 redundancies and the closure of six restaurants.
The deal, which is being undertaken through a pre-pack administration process, will leave the brand with seven locations and employing more than 300 people.
According to its latest set of financial accounts, for the year to 30 September, 2023, Gusto’s turnover totalled £26.6m and it made a pre-tax loss of £3.2m.
Its results for its most recent financial year are due to be filed with Companies House by the end of September.
Gusto ‘well-loved with great heritage’
Paul Moran, CEO of Gusto Restaurants, 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, added: “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 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.”
‘Profoundly sorry to see six of our restaurants close’
The transaction is being led by Will Wright and Rick Harrison from Interpath who are expected to be appointed joint administrators to Gusto Restaurants Limited.
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 twenty years.”
Interpath said the majority of the sites earmarked for closure are “smaller sites in suburban locations which have become economically unviable due to continuing cost headwinds affecting the sector”.
Moran added: “We are profoundly sorry to see six of our restaurants close and are tremendously grateful for the support of our staff and our loyal customers at these locations over the years.”