Italian restaurant chain Gusto facing financial difficulties
Gusto, a popular Italian restaurant chain, is on the verge of administration due to financial pressures in the casual dining sector. Interpath Advisory is preparing a takeover, with Cherry Equity Partners likely to be the new owner. Job losses are expected, but a deal is imminent. This development comes amidst warnings of a jobs crisis in the hospitality industry.
The Italian restaurant chain Gusto is set to fall into administration, highlighting the financial pressure on Britain's casual dining sector. Interpath Advisory is preparing a pre-pack insolvency of Gusto, which operates from 13 sites. A vehicle established by Cherry Equity Partners, the owner of Cabana, is expected to be the buyer, taking over most of Gusto's sites with potential job losses. The deal could be finalized soon, according to sources.
Gusto's collapse, backed by private equity investor Palatine, follows warnings from industry leaders about the sector's challenges due to tax rises. UK Hospitality's Kate Nicholls warned of a looming jobs crisis in the industry. Meanwhile, David Page, a restaurant industry veteran, is raising funds to capitalize on acquisition opportunities in casual dining, planning to lead London-listed Tasty as Bow Street Group.
Interpath has not commented on the Gusto process.
According to the source: Sky News.
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