South African tycoon Dick Enthoven has agreed to provide the struggling Mexican-themed restaurant chain with £4m in fresh investment through a Luxembourg-based holding company called Yellowwoods.
Wahaca, which was founded back in 2006 by Mark Selby and Thomasina Miers, announced back in August that it was to close more than a third of its estate as part of a Company Voluntary Arrangement (CVA), including sites in London, Bristol, Manchester and Liverpool.
In September it was reported that the CVA proposals also involved lenders and shareholders writing off £25m of debt while injecting £5m in to the business.
Responding to Enthoven's investment, Selby said: “As laid out in our published CVA, we had to raise new cash in order to take the business forward in the strongest position possible.
“As part of that, Yellowwoods have lent money to Wahaca alongside their equity stake in the business.
“We are very proud that our investors and our bank continue to be excited about our future and are supporting our drive to be the most sustainable restaurant group in the UK.”
Enthoven helped set up Nando’s in 1987 after he provided founders Fernando Duarte and Robbie Brozin with a start-up loan.
Having initially established restaurants in Johannesburg and Portugal, Nando’s expanded into the UK in 1992.
Nando’s UK operations, which encompass more than 300 restaurants, are headed up by Enthoven's son Robby, who joined the company’s board in 1993.