Wahaca drafts in advisors

Wahaca has reportedly drafted in advisors in order to help it consider its financial options as the nationwide lockdown continues. 

According to Sky News, the mexican chain is now working alongside PwC to examine its finances and advise it before a reopening timetable for the hospitality sector is released by the government.

Insider sources reportedly told Sky News that the group would now examine a number of financing options in the coming weeks.

A company voluntary arrangement is not being considered at this point, according to a spokesperson. Nonetheless, it is “likely” that other alternatives will involve seeking a new investor or another form of restructuring, though an outright sale is “not understood to be a priority”.

The group currently trades from 25 restaurants and employs about 1,000 staff, most of whom have been furloughed in light of the ongoing pandemic.

News of the appointment comes after Wahaca co-founder, Thomasina Miers, urged the government to help the restaurant industry by pausing rents as the pandemic continues to keep businesses closed. 

Miers said: “Hospitality is one of the hardest hit sectors in the current climate, and will be one of the last to recover.

“While the existing measures being taken by the government go some way to offer a lifeline to our industry, it’s crucial that support and protection is also extended to the landlords of the commercial premises from which we operate, in order to help ensure a return to normality in the hopefully not-too-distant future.”

She added: “We’re one in 10 of the UK’s employees and vital social and cultural centres at the heart of cities and communities. 

“This initiative will go some way to preventing an otherwise annihilation of one of the country’s most creative and dynamic industries.”