Las Iguanas restructuring plan wins court approval

Las Iguanas’ parent company Big Table Group has won High Court approval for its restructuring plan, which aims to avoid the Latin American chain’s collapse into administration.

Lawyers for Las Iguanas told the High Court earlier this week that a restructure would enable the company to erase its debts, which are believed to be worth £37m.

The chain’s intended restructure plan must now be approved by 75% of the company’s creditors to go ahead.

A spokesperson for Big Table Group said: "We are pleased that the Court has allowed us to proceed with the next steps of the proposed restructuring plan. It is disappointing that some of yesterday’s media coverage relied on unnecessary sensationalism and, in some cases, did not accurately reflect the details of the plan. Our focus remains firmly on supporting our teams and ensuring all of our sites continue to trade, which we fully expect to continue."

The Caterer understands Las Iguanas is not expecting a large amount of site closures, and that the debt referred to is loan notes, of which the chain is a guarantor.

Nick Stockley, partner at law firm Mayo Wynne Baxter, said: “Las Iguanas has followed the formal restructuring plan route as an alternative to administration. 

“A restructuring plan gives Las Iguanas a chance to make significant changes to its business structure whilst continuing to trade, rather than sound the potential death knell of administration.

“Las Iguanas has already tried to make itself more appealing but the approval of the restructuring plan may simply delay its eventual demise.”

In its results for the year ended 27 October 2024, the Big Table Group-owned brand reported a loss before tax of £3.4m, which it attributed to the cost of living crisis.

It added: “Impact of cost of living has been particularly hard on the sub-set of casual dining that has higher drinks mix, as the target demographic (20-35 years) has both reduced their consumer spend and alcohol consumption.

“Whilst bottomless brunch and celebration events remained popular on key events and weekends, there has been a shift in both frequency and type of occasion during the off-peak periods, which has impacted the drink led casual dining brands including Las Iguanas.”

Las Iguanas was founded in Bristol in 1991 and joined Big Table Group in 2015. It now operates over 40 restaurants across the UK.