Las Iguanas seeks to restructure £37 million debt burden

Las Iguanas, the Latin American-themed restaurant chain owned by private equity-backed Big Table Group, has launched a restructuring plan aimed at eliminating approximately £37 million in loan note liabilities and resetting lease obligations across its UK estate, as mounting cost pressures and shifting consumer behaviour continue to strain the casual dining sector.

Founded in Bristol in 1991, Las Iguanas expanded nationally over the past three decades through a combination of organic growth and private equity ownership transitions. The chain became part of Casual Dining Group in 2015 before ultimately joining Big Table Group following the wider restructuring of the UK casual dining sector during and after the COVID-19 pandemic.

Las Iguanas reported a pre-tax loss of approximately £3.4 million in its most recent published financial results for the year ended October 27, 2024. The business attributed the deterioration in performance to broader cost-of-living pressures affecting discretionary consumer spending, particularly among younger consumers who historically formed a key part of the chain’s customer base.

The company said reduced alcohol consumption and lower frequency of social dining occasions outside peak periods had disproportionately affected drink-led casual dining brands. While promotional offerings and event-driven trading remained resilient during weekends and holiday periods, the business reported weaker demand during off-peak trading windows.

The restructuring proposal, advanced under Part 26A of the Companies Act 2006, was approved at the convening hearing stage by the High Court on 7 May, allowing the company to proceed to creditor meetings scheduled for later this month. A sanction hearing is expected in early June.

The plan has been proposed by Las Iguanas Holdings, the group entity that holds the restaurant leases for the chain’s approximately 44 UK locations. The company said the restructuring is intended to preserve trading operations and avoid a potential administration scenario that could jeopardise the broader business.

Big Table Group, which also operates the Bella Italia and Café Rouge brands, has committed approximately £3 million in fresh capital as part of the restructuring. The proposal also contemplates revised rental arrangements with landlords across parts of the estate, reflecting ongoing pressure within the UK hospitality and retail property markets as operators struggle with elevated labour, food and occupancy costs.

Court filings and public statements indicate the company’s primary financial challenge relates to legacy loan note obligations for which Las Iguanas acts as guarantor. The restructuring plan seeks to compromise or eliminate those liabilities while preserving ongoing operations.

The company has stated that it does not currently anticipate widespread restaurant closures as part of the process. Management has instead framed the plan as a balance sheet restructuring designed to stabilise the business while maintaining supplier relationships and employee continuity.