Barburrito secures future saving restaurants and jobs with sale to co-founders
RSM Restructuring Advisory LLP has helped Barburrito, Mexican eatery, with a successful Administration sale securing new investment in the business.
Barburrito chairman Graham Turner leads a new investment in the business, alongside other private investors, backing the existing management team of Morgan Davies, Founder & CEO and Steve Herring, finance director.
The deal protects 14 stores and over 270 jobs via a corporate restructure, which has been led by restructuring specialists RSM. Three stores are to close – Aberdeen Union Square, Edinburgh Lothian Road, Manchester Deansgate. The Edinburgh and Manchester teams have transferred to other stores in the same city.
Damian Webb, partner at RSM Restructuring Advisory, commented: ‘The coronavirus pandemic has presented a huge range of challenges for the casual dining sector. This transaction demonstrate that investors will back strong management teams with a sound underlying business model. Importantly this transaction is a positive outcome for the 270 employees, suppliers and landlords. Significantly in an unprecedented week for UK retail it keeps open a key asset for many high streets and retail centres.”
Morgan Davies, CEO comments: ‘I am delighted that we have secured the future of Barburrito, just ahead of our 15th birthday. The last few months have been extremely challenging for the whole sector. The high street is changing fast and my heart goes out to all those affected. Despite this, we have done really well in the stores that have remained open and, in particular, we have demonstrated the success of our delivery offering. In common with many in our sector, the closures and liabilities accrued during lockdown have resulted in us having to restructure the business. However, with the new investment, support of our landlords and the hard work of our fantastic teams, Barburrito is now well positioned to succeed in this new landscape.’
Graham Turner, chairman and now investor stated: ‘Morgan and the team have developed a great business which was poised for fast growth just before the pandemic hit. They have navigated through the lockdowns and re-openings and have seen good traction with the delivery offering of the business, which has grown significantly. This transaction has enabled the business to secure the vast majority of jobs and restructure its balance sheet so that it can take advantage of future opportunities both in terms of new sites and delivery offerings