The UK’s first burrito chain, Barburrito, has been sold out of administration, securing in excess of 270 jobs.
The deal also protects 14 Barburrito sites via a corporate restructure, led by restructuring specialists RSM.
Shoosmiths’ corporate restructuring and advisory team – led by partner Lemi McAuley and principal associate Lizzy Wood – advised RSM on the sale.
Lemi said: “This week alone has seen a number of major high street blows, with some major names set to disappear and the future of others in doubt.
“We are pleased, therefore, that Barburrito has been able to secure a new buyer, which will be a massive relief to the company and its employees.”
Barburrito chairman Graham Turner led the new investment, alongside private investors, backing the existing management team of Morgan Davies, founder and chief executive and Steve Herring, finance director.
Three stores are to close, having not reopened since the first March lockdown – Aberdeen Union Square, Edinburgh Lothian Road, Manchester Deansgate. Its Edinburgh and Manchester teams have transferred to other stores in the same city.
Morgan Davies said: “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.”