Italian Restaurant Chain Gusto Nears Administration, Pre-Pack Sale Expected

Gusto, a UK-based Italian restaurant chain with 13 locations, is on the brink of administration with a pre-pack insolvency process being prepared by Interpath Advisory. Cherry Equity Partners, owner of the Latin American restaurant brand Cabana, is the likely buyer and expected to take over most of Gusto’s sites, although some job losses are anticipated. The chain, backed by private equity investor Palatine, has faced significant financial pressure due to rising costs such as increased National Insurance and minimum wage levels, which have broadly affected the UK's casual dining sector. Gusto previously underwent a Company Voluntary Arrangement in 2020 during the Covid-19 pandemic to safeguard the business and jobs. Industry leaders like Kate Nicholls of UK Hospitality have warned of a potential jobs crisis given the challenging economic conditions for hospitality operators. The takeover deal could be finalized within days, underscoring ongoing consolidation trends in the restaurant industry.