El Mexicana restaurants bought out of administration
The El Mexicana restaurant group has been bought out of administration, securing 92 jobs.
The Mexican restaurant brand was founded by John Coverley, a former head of convenience at Sainsbury's and creator of the Nosh coffee shop brand, in 2011.
It established itself as a well-known grab-and-go operator with sites across UK transport hubs and shopping centres.
On 2 March administrators from Interpath Advisory were appointed to six entities within the parent Elmex Group, which held the leases for 10 sites under the El Mexicana and sister Don Churro brand, as well as the company's head office and kitchen in Stevenage.
The business and assets were immediately sold to Cholco Consulting Limited, which lists Coverley as a director.
Tim Bateson, director at Interpath Advisory, said: "[In] common with other casual dining operators, [El Mexicana] has recently had to contend with sharply rising costs, as well as challenging trading conditions in the wake of the pandemic.
"We're therefore pleased to have been able to conclude this transaction, which safeguards the future of the brand, as well as a significant number of jobs."
Coverley and Paul Stagg, directors at Cholco Consulting Limited, said: "We are confident that the business will now be driven forward with renewed impetus, generating improved sales and profitability in what remains a challenging climate."