The popular Italian restaurant chain Gusto will close almost half of its sites as it could run out of money in only days.
Gusto, known for its brick walls and its bottomless brunches over sourdough pizza, runs 13 restaurants and employs 400 ‘family members’.
But the 20-year-old restaurant group will sell six of its branches to keep running as part of a rescue deal, with 190 people losing their jobs.
A full list of the closures has not been announced, but advisors Interpath say it will likely be ‘economically unviable’ suburban sites.
Gusto’s locations include:
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- Alderley Edge
- Birmingham
- Cheadle Hulme
- Cookridge
- Edinburgh
- Heswall
- Knutsford
- Leeds City Centre
- Liverpool
- Manchester
- Newcastle
- Nottingham
- Oxford
Paul Moran, chief executive 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.
Gusto published a Notification of Intent to appoint an administrator this morning.
Private equity investment firm Cherry Equity Partners, which owns the Latin American chain Cabana, is buying the chain.
This is part of a ‘pre-pack administration’, when a business flogs its assets before appointing administrators.
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.’
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.’
Gusto shuttered its Didsbury branch last November ‘following an approach from a well-known high street retailer’, it said at the time.
The final review of the restaurant on TripAdvisor read: ‘We had a wonderful meal. The food was fresh and delicious, the service was attentive and friendly and the ambience was relaxed and warm.
‘All in all, a great experience and I highly recommend a visit.’
Memories of candle-lit dinners and pizza parties are becoming fewer by the day in the UK, as the hospitality sector faces increasing challenges.
More than one in 10 restaurants are at imminent risk of closure, with 6,000 expected to close this year.
And many already have, with 14 closing their doors for the final time in London alone, according to Squaremeal.
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Julie Fisher, UK CEO at Simply Business, a small business insurer, told Metro that it’s not just big retailers making tough decisions this year.
She said: ‘Independent businesses are bearing the brunt. Our annual SME Insights Report revealed that a worrying 37% of high street shop owners are planning to close or sell their business in 2025.’
Online shopping isn’t the only nail in the coffin, Fisher stressed, with sky-high running costs and more cautious customers adding to their retailer’s woes.
‘These are clear signs that our high streets, as we know them, are under threat, and will become unrecognisable without intervention,’ she added.
‘From reduced business rates to initiatives that increase footfall, we encourage the government to acknowledge the fears of Britain’s entrepreneurs and hear their calls for support.’
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