Las Iguanas restaurant chain’s parent company, Iguanas Holdings Limited, has successfully avoided administration following the approval of a restructuring plan by a High Court judge. The company, which operates 44 Las Iguanas eateries across the UK, faced the possibility of entering administration without the court’s approval, as emphasized by legal representatives during a recent hearing.
Financial backing from the parent company, The Big Table Group, which also owns popular chains such as Frankie & Benny’s and Bella Italia, played a crucial role in sustaining the business. The restructuring plan gained approval from the majority of creditors, leading to the elimination of approximately £37 million in debts owed to a creditor of Iguanas Holdings. Additionally, The Big Table Group committed to injecting £3 million into the company as part of a comprehensive “turnaround strategy.”
The approved plan includes measures to reduce certain rental obligations on landlords and negotiate settlements for outstanding debts. The presiding judge, Mr. Justice Meade, sanctioned the scheme at the conclusion of the court proceedings held in London.
Ryan Perkins, representing the company, highlighted the challenges faced by the UK casual dining sector in recent years, citing factors such as high inflation, reduced consumer spending, and increased taxes. Despite efforts to enhance the Las Iguanas dining experience, trading conditions remained arduous, leading to significant financial losses in the previous fiscal year.
The company’s dire financial situation necessitated the approval of the restructuring plan to prevent insolvency. Although some creditors opposed the plan, none contested its sanctioning in court, acknowledging the absence of superior alternatives. The proposed restructuring mirrors strategies implemented by other prominent high-street brands in similar situations, such as Poundland, River Island, and Revolution Bars.
