Iguanas Holdings Ltd., the operator of Mexican restaurant chain Las Iguanas, has submitted a court-approved restructuring plan amid growing bankruptcy fears, threatening the closure of 47 of its chains.
High Court judge Justice Hildyard approved the calling of a creditors’ meeting regarding the restructuring plan following arguments from the company’s lawyers, who informed the High Court about the poor financial condition and possible cash crunch on May 6, 2026.
Las Iguanas is set to call a meeting of creditors to vote on a restructuring plan aimed at saving 47 UK restaurants from administration.
Creditors will vote on the proposal on May 28. If approved, the court will provide final approval on June 5.
The restructuring plan aims to save 47 UK locations from bankruptcy. The plan calls for a reduction in rents and an agreement on outstanding landlord debt.
The proposal shifts the financial burden onto creditors to ease the immediate pressure on assets.
Big Table Group has pledged £3 million in new funding, but has indicated it will stop funding existing operating losses.
deteriorating economic situation
Mexican restaurant chains are facing dire financial conditions marked by heavy debt loads and high food and labor costs. The company owed £37 million to a single primary lender.
As part of the new investment, Big Table Group has pledged $3 million in new funds, but has indicated it will stop funding existing operating losses.
According to Chad Mottray, head of the National Restaurant Association, “Well, we’ve seen total labor and food costs increase by 35% since the pandemic. But it’s not just these costs. We’ve also seen increases in insurance and taxes and everything else, utility costs and so on.”
The casual dining sector is facing industry-wide challenges due to increased taxes, inflationary pressures and declining consumer spending.
According to Ryan Perkins, Las Iguanas’ legal representative, the market environment will remain volatile even against the backdrop of the efforts of Iguanas Holdings and its parent company, Big Table Group.
“The number of restaurant insolvencies in the UK increased by 46% last year, according to Insolvency Service numbers, due to the downturn in the hospitality industry caused by rising costs and a decline in consumer spending,” Perkins said.
“Now, if the restructuring plan is not approved, the company ‘will have no funds to continue trading’ and could fall into administration,” as Swindon Advisors reported.
