El Mexicana restaurant group saved in pre-pack deal

The group, founded by John Coverley in 2011, will continue to trade under its El Mexicana and Don Churro brands after being acquired in a pre-pack administration deal by the previous owners.

The deal sees a new company headed by Coverley and Paul Stagg take control of a number of entities from the Elmex Group.

The Mexican-inspired food to go brands had suffered as a result of rising costs as well as challenging trading conditions in the wake of the Coronavirus pandemic.

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 10 El Mexicana and Don Churro sites, as well as the company’s head office and kitchen in Stevenage.

The company operates sites in locations including Beaconsfield, Cambridge, Peterborough, Stevenage, Swindon and Worcester.

“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,” says Bateson.

“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.”

The deal secures 92 jobs at the group.

“We are delighted to have secured the future of this much-loved and long-established brand in the grab and go sector,” says John Coverley and Paul Stagg, directors at Cholco Consulting Limited.

“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.”