A Glasgow steakhouse is set to close its doors after the franchise went into administration. Cau, which is located on Ingram Street, adjacent to Royal Exchange Square, opened in 2015, and has received favourable reviews from customers.
However, as the Gaucho franchise has gone into administration, the restaurant will cease to trade.
Gaucho is set to let go 540 staff as a result.
Administrators at Deloitte say the 16 Gaucho sites, including one restaurant in Edinburgh, will remain open while a buyer is sought for that part of the business.
Cau has experienced falling sales for three years, and is now making significant losses, but the Gaucho business is still profitable.
Matt Smith, joint administrator at Deloitte, said: “Unfortunately the Cau brand has struggled in the oversupplied casual dining sector, with rapid over-expansion, poor site selection, onerous lease arrangements and a fundamentally poor guest proposition all being factors in its under-performance.
“As such, the decision has been made to close this loss-making part of the group with immediate effect, unfortunately resulting in today’s redundancies.”
Source: Glasgow Live