**Gusto Restaurant Chain to Close Six Outlets, Safeguarding Seven in Rescue Deal**
Gusto, the Italian-inspired restaurant group, is to permanently shut six of its UK venues as part of a rescue package aimed at securing the future of its most prominent branches. The strategic move, however, will result in the loss of approximately 190 jobs, despite efforts to maintain over 300 positions across the remaining sites.
The announcement comes in the wake of growing speculation regarding Gusto’s financial stability, with reports earlier in the day suggesting the chain was on the verge of collapse. In a bid to stave off full administration, it has been confirmed that the majority of Gusto’s business will be acquired by Cherry Equity Partners—the investment group already known for its role with the Latin American dining chain Cabana. The deal is being executed under a pre-pack administration, a common but sometimes controversial method used to rescue distressed companies and protect viable aspects of a business.
Under the agreement, seven of Gusto’s restaurants will continue to welcome guests, with over 300 jobs preserved as a result. The chain currently operates thirteen locations across the UK, including venues in Manchester city centre, Alderley Edge, Cheadle Hulme, Knutsford, Birmingham, Leeds, Edinburgh, Heswall, Liverpool, Newcastle, Nottingham, Oxford, and Cookridge. The exact branches facing imminent closure have not yet been disclosed, but it is understood that the sites affected are predominantly based in suburban areas that have struggled to remain profitable amid ongoing economic pressures.
Paul Moran, Gusto’s chief executive officer, expressed his regret over the situation, commenting: “We are profoundly sorry to see six of our restaurants close and are tremendously grateful for the support of our staff and our loyal customers at these locations over the years.” He went on to highlight the importance of the new investment, describing it as a “strong and stable platform” upon which the revitalised business can begin to rebuild.
The move comes as the hospitality industry continues to battle rising costs, changing consumer habits, and the aftershocks of the pandemic, which together have placed unprecedented strain on mid-market restaurant groups. Analysts note that pre-pack administrations, although controversial for their impact on unsecured creditors and employees, are sometimes seen as necessary to prevent wholesale collapse and protect as many jobs as possible.
Cherry Equity Partners’ CEO and operating partner, Ed Standring, spoke about the company’s vision following the acquisition: “This investment marks our third acquisition in six months, and underscores our deep commitment to the UK hospitality sector. We are passionate about this industry and see tremendous potential for well-positioned brands such as Gusto.” Jamie Barber, chairman and founding partner at Cherry Equity Partners, echoed this optimism, praising Gusto as a “well-loved brand with a great heritage” and pledging continued investment and support.
The restructuring deal is being managed by Interpath Advisory, with Will Wright and Rick Harrison expected to be named joint administrators. Will Wright, CEO of Interpath UK, remarked, “Although these continue to be challenging times for hospitality operators, we are pleased to advise on this transaction which will safeguard the future of a fantastic brand that has served customers in both cities and suburbs for over twenty years.”
Founded in 2005 in Cheshire, Gusto was conceived as a modern successor to the Est Est Est chain and rapidly built a reputation for quality Italian cuisine. The restaurants are known for serving classics such as pasta, sourdough pizza, antipasti, gnocchi, and a variety of steaks, alongside lighter dishes and desserts. The group previously closed its Didsbury outlet in November last year following a strategic review.
This latest development highlights the persistent volatility in the restaurant sector, even as consumer confidence slowly returns. For now, Gusto’s core restaurants will continue trading, while hundreds of employees and their communities await further clarity about their futures.
As the situation unfolds, the sector will be watching closely to see if Gusto’s new owners can restore stability and set the brand on a pathway to renewed growth.