Gusto faces administration with potential job losses

The Italian food chain has sites in Cheadle Hulme, Manchester and Alderley Edge

Gusto restaurant chain faces administration amid financial struggles

Italian restaurant chain Gusto Italian is reportedly nearing collapse, with plans for a pre-pack insolvency. Interpath Advisory is preparing to handle the process, according to sources. The chain operates 13 locations across the UK, with Cherry Equity Partners, known for the Latin American restaurant Cabana, set to acquire most of the sites. However, job losses are expected as part of the transition. Founded in 2005, Gusto has had prior accolades, including Italian Restaurant of the Year. Several of its locations have already closed amid financial difficulties, signaling a turbulent period for the brand as it attempts to navigate its financial obligations.

Gusto's imminent administration highlights the precarious state of the restaurant industry, which continues to struggle in the wake of post-pandemic economic challenges. With rising costs and changing consumer preferences, the chain's move towards a pre-pack insolvency is indicative of a broader trend where traditional dining experiences are re-evaluated. The decision to close locations adds to concerns about job security in the sector. If Cherry Equity Partners succeeds in their acquisition, it could bring a fresh start, albeit with sacrifices. The challenges faced by Gusto may resonate with many restauranteurs, pressing them to reassess their business models.

Highlights

The future of Gusto will depend on its ability to adapt to current market demands.