The restaurant group has confirmed it will be closing six sites as part of a deal with another firm
Gusto Italian is located in Liverpool’s Royal Albert Dock(Image: Press Handout)
Gusto has announced the closure of six of its restaurants as part of a deal that will lead to around 190 redundancies. The group currently operates 13 venues in total.
Earlier today, reports suggested that the restaurant chain was teetering on the brink of collapse and was likely to be sold through a pre-packaged insolvency agreement. Sky News reported that Interpath Advisory was gearing up for such an insolvency agreement.
It has now been confirmed that Cherry Equity Partners, the proprietors of Latin American restaurant brand Cabana, will acquire the majority of Gusto. Bosses say the transaction, which will be carried out via a pre-pack administration process, will ensure that seven flagship Gusto restaurants remain open.
They say this will preserve more than 300 jobs. However, it means that six restaurants within the group will shut down, leading to approximately 190 job losses.
It is yet to be confirmed which sites are set to close. Yet the closures will predominantly affect smaller, suburban branches the firm says have become financially unsustainable due to ongoing economic pressures on the industry, reports Manchester Evening News.
Paul Moran, CEO of Gusto Restaurants, said: “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.”
The chain boasts several north-west locations in Alderley Edge, Cheadle Hulme and Knutsford, along with a Manchester city centre restaurant. Additionally, it operates sites in Birmingham, Leeds, Cookridge in Leeds, Edinburgh, Heswall in the Wirral, Liverpool, Newcastle, Nottingham and Oxford.
Speaking about the deal, Mr Moran added: “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, said: “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, added: “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.”
The deal is being overseen by Will Wright and Rick Harrison from Interpath, who are anticipated to be named 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.”
Gusto, established in Cheshire in 2005 by Jeremy Roberts and the late Tim Bacon as a new incarnation of Est Est Est, has been recognised as Italian Restaurant of the Year at the prestigious PAPA Industry Awards by the Pizza, Pasta and Italian Food Association.
The chain’s offerings include a variety of Italian favourites such as pasta, sourdough pizzas, antipasti, gnocchi, and steaks, alongside salads and desserts like ‘dough petals’ and Tiramisu. Last November, Gusto Italian in Didsbury ceased operations abruptly following a review of the site’s performance and an offer from a ‘well-known’ retailer.
Dining and Cooking