Chilango bought out of administration in deal that will save 130 jobs

27 August 2020 by
Chilango bought out of administration in deal that will save 130 jobs

Mexican restaurant chain Chilango has been bought out of administration in a deal that will see 10 of its 11 restaurants continue to trade, saving around 130 jobs.

Investment group RD Capital Partners, founded by Sameer Rizvi and Iryna Dubylovska, has acquired the brand, which had launched in 2007 and operated predominantly in central London.

Sameer Rizvi, chief executive of RD Capital Partners, said: "We are delighted to partner with a brand and business we have long admired. Chilango has a great proposition, which appeals to a diverse customer base, and we look forward to working with Richard and his team."

Chilango had undergone a Company Voluntary Arrangement (CVA) in January to restructure its debts and had seen like-for-like sales increase by 3% earlier this year, however the impact of the Covid-19 lockdown saw the business slip into insolvency.

Administrator RSM led the sales process, which resulted in 10 offers being made for the business. The deal with RD Capital Partners will see managing director Richard Franks continue to lead Chilango.

Franks added: "Despite Covid-19, the team has put forth an outstanding effort to continue bringing our vibrant flavours to the UK. I'm grateful for the team's commitment and resilience and the strong results from delivery, speak to their hard work and determination, all of which was recognised by RD Capital Partners."

Photo: Shutterstock

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