Argentine restaurant group Gaucho is preparing to file for administration, putting 38 outlets and around 1,500 jobs at risk.
The group operates 16 restaurants, which span 70,000 sq ft altogether, according to Radius Data Exchange.
It also has 22 Cau outlets, measuring a combined 73,000 sq ft. The 38 units collectively measure 143,000 sq ft.
The group drafted in advisers for the Cau-branded portfolio in May to consider how it could exit the properties.
Directors at the group have filed a notice of intent to appoint administrators for the business.
A spokesperson said: “Despite an extensive options process, which attracted proposals from a number of parties, it is with regret that due to the complexities of the group’s legal structure, ongoing underperformance at Cau and the level of indebtedness, the directors have been unable to find an agreed, solvent solution.
“Consequently, the directors have today filed in court a notice of intention to appoint an administrator for the business. Until such time as the administrator has been appointed and agreed plans with management, it is business as usual.”
Private equity firm Equistone Partners, Gaucho’s majority stakeholder, said that it had presented Gaucho’s lenders with a business plan that included a funding commitment and “would have maintained the company as a going concern”.
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