Tue 29th Jul 2025 - Exclusive: Majority of Gusto Italian to be acquired by Cherry Equity Partners, six sites to close Exclusive – Majority of Gusto Italian to be acquired by Cherry Equity Partners, six sites to close: Cherry Equity Partners, the investment vehicle led by Ed Standring and Jamie Barber, and backed by an international family office, is to acquire the majority of Gusto Italian, the premium Italian restaurant operator, via a pre-pack administration process. The deal will ensure seven of Gusto’s 13 restaurants will continue to trade, safeguarding over 300 jobs. Propel revealed in June that Gusto had begun working with advisory firm Interpath and that a process could include a restructure of the business and an assessment of its investment options. The company previously tested the investment waters last year and Propel understands it came close to being acquired by a trade buyer, believed to be Cote, until the announcement of last October’s Budget saw that deal collapse. Propel understands that Cherry Equity Partners, which also backs Cabana and Bistrot Pierre, beat off competition from Cain International, the backers of Prezzo Italian, to acquire the majority of the Gusto business. Paul Moran, chief executive of Gusto, said: “This investment marks an important step forward for Gusto, ensuring the future of the business and putting in place a strong and stable platform upon which we can start to grow the business again.” Standring, chief executive and operating partner of Cherry Equity Partners, said: “This investment marks our third acquisition in six months, and underscores our deep commitment to the UK hospitality sector. Cherry is an operator-led sector specialist. This is an industry we’re incredibly passionate about and one we believe is full of opportunity.” Barber, chairman and founding partner of Cherry Equity Partners, said: “Gusto is a well-loved brand with a great heritage, and we’re looking forward to working with Paul and the team to invest and grow the business.” Will Wright and Rick Harrison from Interpath are expected to be appointed joint administrators to Gusto Restaurants Ltd. Wright, UK chief executive of Interpath, said: “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 twenty years.” The process will see six restaurants close, resulting in circa 190 redundancies. The majority of these are smaller sites in suburban locations which have become economically unviable due to continuing cost headwinds affecting the sector. Moran said: “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.” Gusto was founded in 2005 by Living Ventures, the hospitality and development platform led by Jeremy Roberts and the late Tim Bacon. Palatine backed a management buyout of the business in 2014, with Beechbrook providing a mezzanine loan. Over the ensuing 11 years, the company has established itself as a “best-in-class operator, providing a premium, Italian inspired dining experience” from an estate of city centre and neighbourhood sites, with a footprint stretching from Edinburgh to Oxford. The company, which operates half of its sites in the north west, opened its first southern site, in Oxford, at the end of 2022 after a £1.8m investment. Last November it closed its Didsbury restaurant “following an approach from a well-known high street retailer”, with Oliver Bonas subsequently opening on the site. Gusto features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and the next edition will feature 1,125 companies when it is released on Friday (13 June) at 12pm. Gusto’s turnover of £26,679,000 for the year ending 30 September 2023 is the 423rd highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.