Italian restaurant chain Gusto will be acquired out of pre-pack administration by Cherry Equity Partners, resulting in the closure of six of its 13 restaurants and 190 job losses.
The investment company, led by hospitality veterans Ed Standring and Jamie Barber, will purchase seven locations, preserving more than 300 jobs, The Caterer has reported.
The closures will primarily affect smaller suburban restaurants, which administrator Interpath Advisory describes as “economically unviable due to continuing cost headwinds affecting the sector.”
Interpath Advisory UK chief executive Will Wright was quoted by The Caterer: “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 which has been serving customers across cities and suburbs for over 20 years.”
This acquisition marks Cherry Equity Partners’ third deal in 2025, following the buyouts of Latin American restaurant group Cabana in January and French-themed chain Bistrot Pierre in March.
Founded in 2005 by Jeremy Roberts and the late Tim Bacon of Living Ventures Group, Gusto received significant backing from private equity firm Palatine in 2014 to fuel expansion.
The chain faced challenges during the pandemic and entered voluntary arrangement in 2020, which saved more than 600 jobs but led to the closure of four sites.
In 2024, Gusto also closed its Didsbury restaurant after high street retailer Oliver Bonas took over the site.
Gusto chief executive Paul Moran was quoted by The Caterer: “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.”
The divestiture has secured the future of the business and provided a stable platform for the company to grow.
“Italian restaurant chain Gusto to be acquired by Cherry Equity” was originally created and published by Verdict Food Service, a GlobalData owned brand.
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