Castle Street outlet is one of 22 across the country owned by parent company Gaucho and accountancy firm KPMG has been called in to look at the options for the struggling brand. Tony McDonough reports
Liverpool’s popular Argentine-themed Cau restaurant could be facing closure as its parent company considers the future of the struggling chain.
Cau opened in Castle Street in 2015, one of a number of new restaurants to open up in the area in the past couple of years, and offers a menu specialising in steaks and burgers.
There are 22 Cau outlets around the UK, employing more than 700 people, and its parent company Gaucho has reportedly appointed accountancy firm KPMG to look at the options for the brand which has suffered double-digit sales declines over the past year.
There has been a significant expansion of the restaurant sector across the country in recent years, with Liverpool no exception to this, but fierce competition and a squeeze on consumer spending means casualties are inevitable.
In a statement to a national newspaper Gaucho said: “As part of a comprehensive strategic review, the group’s new management team, with the support of its shareholders, is at the early stages of exploring a number of financial restructuring options. No decisions have yet been made.”
The company may consider a company voluntary arrangement, or CVA. This is an arrangement whereby landlords are persuaded to accept lower rental payments to give struggling restaurants and retailers breathing space to try to reverse their fortunes.”
In March this year Cau’s Liverpool outlet was forced to close for a short period after council health inspectors found mice in food preparation areas, something the company blamed on nearby construction work.