CAU in Leamington set to close as restaurant group collapses
Steakhouse chain CAU will close all of its restaurants including its branch in Leamington.
Gaucho Group, owned by private equity firm Equistone, yesterday filed for administration.
On Thursday, Deloitte confirmed the CAU arm of the business is to close.
There are 22 CAU restaurants across the UK including the branch in Satchwell Street off Regent Street.
Administrators confirmed around 540 jobs will be lost.Joint administrator Matt Smith said that the core Gaucho business is trading well, but CAU is under-performing.
Deloitte told our sister paper i that Gaucho is hoping for a sale, thus securing jobs.Mr Smith 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.
"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.
"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.
"We are taking steps to stabilise the business following our appointment and are now seeking expressions of interest in terms of a sale of the Gaucho business. We appreciate the support of the group’s colleagues and management team and other key stakeholders in achieving this aim.”
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