Las Iguanas restaurant operator, Iguanas Holdings Limited, has been rescued from potential administration following the approval of a restructuring plan by a High Court judge. The company, which manages 44 Las Iguanas eateries across the UK, faced the risk of entering administration if the plan was not accepted, as revealed by legal representatives during a court hearing.
The financial lifeline was provided by its parent company, The Big Table Group, known for owning various dining chains like Frankie & Benny’s and Bella Italia. The successful restructuring plan, supported by a majority of creditors, will eliminate approximately £37 million in debts owed to one creditor of Iguanas Holdings. Additionally, The Big Table Group will inject £3 million into the company as part of a comprehensive “turnaround strategy.”
The approved plan includes adjustments to rental obligations enforced on landlords and the settlement of certain debts owed to them. Mr. Justice Meade endorsed the scheme at the London hearing, ensuring the company’s path forward.
In a prior statement, Ryan Perkins highlighted the challenges faced by the UK casual dining sector due to factors such as high inflation, reduced consumer spending, and increased taxes. Despite efforts to enhance the Las Iguanas menu and customer experience, trading conditions remained arduous, resulting in a significant loss of nearly £10 million for Iguanas Holdings in the previous financial year.
Mr. Perkins emphasized that without the approved plan, the company would face financial depletion. The plan was subject to a creditor vote, with Mr. Perkins confirming in court that despite some creditors opposing the plan, no alternative or superior proposals were presented.
Moreover, Mr. Perkins noted that the restructuring approach mirrored strategies implemented by other popular high-street chains like Poundland, River Island, and Revolution Bars in recent years. The successful restructuring of Las Iguanas signifies a positive development for the company’s future amidst challenging industry conditions.