Martin Williams, founder of M Restaurants and Ex Managing Director of Gaucho, has placed a second bid to purchase the restaurant chain, following last week’s announcement of its administration.
Well before the administration announcement, in 2017, Martin Williams had already proposed a bid to purchase Gaucho, though it was rejected by their majority shareholder Equistone.
With the recent administration, Williams states how they targeted some key London sites instead, which they felt would benefit from the ‘’multi-faceted, award-winning M venues’’. Since this, they have been re-introduced to conversations with the administrators about acquiring Gaucho Group as a whole.
In February, M Restaurants saw 19% growth as a group, and so Williams hit out at the ‘’dated and rightly dying’’ chains. He tried to acquire Jamie Oliver’s Barbecoa restaurants before they fell into administration, though like his Gaucho bid, no deal was reached.
Williams believes all restaurants and brands are to have their own characters, but more than this, they need to offer a quality proposition and exceptional hospitality. He admits that as financial pressures are rising and hitting the industry, these key aspects are being lost within chains. Now they are seeing the effects from the past years.
Last week Gaucho Group closed 22 CAU Branches immediately as they fell into administration. The administrators, Deloitte, said these branches were loss making, as they had faced negative sales for 3 consecutive years.
Currently, 16 Gaucho restaurants continue to trade, as the search for a buyer continues. As it stands, Gaucho has a good trading position in its market sector, has profitable potential and holds customer loyalty as well as a strong brand.