Administrators conclude sale of El Mexicana ‘grab and go’ food chain

Administrators conclude sale of El Mexicana ‘grab and go’ food chain

Administrators from Interpath Advisory have completed a sale of a number of entities within the Elmex Group which will see 10 El Mexicana and Don Churro food outlets across the UK continue to trade.

On 2 March 2023, Tim Bateson and Chris Pole from Interpath Advisory were appointed as joint administrators to six entities within the Elmex Group: Cholco Limited, LJS Food Limited, Movingfeast Limited, LJS Food Chelmsford Limited, LJS Food Swindon Limited, and LJS Food Worcester Limited.

Collectively, these six entities hold the leases for a total of 10 El Mexicana and Don Churro sites, as well as the Company’s head office and kitchen in Stevenage.

Immediately following their appointment, the joint administrators completed a sale of the businesses and their assets to Cholco Consulting Limited. A total of 92 employees have transferred to the purchaser as part of the transaction.

Tim Bateson, director at Interpath Advisory and joint administrator, said: “El Mexicana has established itself as a popular ‘grab and go’ food operator, with sites across a number of UK transport hubs and shopping centres. However, in common with other casual dining operators, it has recently had to contend with sharply rising costs, as well as challenging trading conditions in the wake of the pandemic.

“We’re therefore pleased to have been able to conclude this transaction, which safeguards the future of the brand, as well as a significant number of jobs.”

John Coverley and Paul Stagg, directors at Cholco Consulting Limited, said: “We are delighted to have secured the future of this much-loved and long-established brand in the grab and go sector. We are confident that the business will now be driven forward with renewed impetus, generating improved sales and profitability in what remains a challenging climate.”

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