Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Swifty Banner Morning Briefing Strap Line
Wed 22nd Jul 2020 - Chilango to appoint administrators
Chilango to appoint administrators: Mexican restaurant brand Chilango has said it intends to file a notice to appoint administrators. The company, which underwent a company voluntary arrangement (CVA) in January, has written to investors ahead of the move. Chilango stated: “During this period we have done our very best to mitigate the pandemic’s impact, operating as much as is safely possible while implementing the various government support measures available. Unfortunately, these efforts have not been sufficient to secure the future of our business. As a result of the coronavirus pandemic, Chilango will give notice of its intention to appoint administrators to the company in the coming days. Our restructuring adviser, RSM, will launch a sales process of the business as we pursue the best possible outcome for the business, our employees and creditors. While the founders of the company, Eric Partaker and Dan Houghton, won’t purchase the company out of administration, the opportunity to do so will be open to any interested party via a bidding process. This isn’t the situation we had hoped to be in after our investors approved our CVA in January. It is all the more frustrating given the positive trading before lock-down. Prior to the pandemic, Chilango’s positive like-for-like sales growth continued and the company was on track to deliver a budgeted group Ebitda of more than £800,000. Although the vast majority of bondholders, following the CVA, chose to preserve their principal investment and rate of return in a new preference share class, we took the decision to pause this conversion. This was to ensure the position of bondholders wasn’t changed or worsened by any steps that might need to be taken, pending the discussions now under way to secure the business’ future. It is with a heavy heart we share this news with you and we’ll provide more information when we have more clarity on the future of the business.” Chilango, which operates 12 sites, primarily in London, underwent the CVA in January as part of the company’s plans to get a grip on its finances and £6.9m debt pile. Bondholders in Chilango were offered the choice to transfer their investment into shares in the company or cash out at a rate of 10p in the pound. About 1,500 people became bondholders in the business via mini-bond offerings in 2014 and 2019, which raised more than £5.8m with a promise of 8% returns. In September 2019, Partaker and Houghton, acting as directors, decided to make their co-chief executive roles redundant, while Richard Franks was promoted to managing director in February. Partaker and Houghton both remain as non-executive directors and major shareholders in the business.


Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
McCain Banner
 
Zapaygo Banner
 
Matthew Clark Banner
 
Deliverect Banner
 
A2Z Masks Banner
 
Pub Plants Banner
 
Yoello Banner
 
Ei Group Banner
 
OrderPay Banner
 
TipJar Banner
 
Trail Banner
 
Odamo Banner
 
Arla Foods Banner
 
Nestle Waters Banner
 
Yumpingo Banner
 
Camile Banner
 
Pepper Banner
 
The Leisure and Hospitality Collective Banner
 
LunchMate Banner
 
Biff's Banner
 
Zonal Banner
 
Swifty Banner
 
Yudu Banner
 
Orderbee Banner
 
Startle Banner
 
Pago Banner
 
Access Banner
 
Ten Kites Banner
 
Prestige Purchasing Banner
 
IOL Banner
 
COREcruitment Banner
 
Punch Taverns Link Punch Taverns Link
Wi5 Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website