**Financial Woes Loom for Las Iguanas Amid Restructuring Efforts**
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The Latin American restaurant chain Las Iguanas, known for its diverse offering of Mexican and South American cuisine, is reportedly facing dire financial challenges that threaten the future of its 44 establishments across the United Kingdom. The latest reports indicate that Iguanas Holdings Limited, the parent company, has incurred losses exceeding £10 million in the last financial year. With an alarming debt of £40 million owed to a single creditor, the company’s prospects appear increasingly grim.
In an effort to stave off potential closure, Iguanas Holdings is preparing to present a restructuring plan aimed at alleviating its financial burdens. This proposal includes seeking reductions in rent and negotiating new arrangements regarding existing debts. A crucial meeting has been scheduled for 28 May, 2026, during which creditors will vote on the proposed measures. If the plan receives approval, the High Court is expected to provide final consent by 5 June.
A High Court judge, Justice Hildyard, has already sanctioned the gathering of creditors to discuss the restructuring initiative, reflecting the severity of the company’s situation. In a statement preceding the meeting, the legal representatives of Iguanas Holdings described the firm as having “fallen into financial difficulties” and highlighted the wider challenges currently besetting the dining industry. They emphasised that even though efforts had been made to adapt to these challenges, sustaining normal business operations remained “very challenging”.
A spokesperson for Las Iguanas voiced a measure of optimism following the court’s ruling, albeit expressing disappointment over sensationalised media portrayals of their plight. They reiterated their commitment to supporting staff and ensuring that the restaurants continue to operate, stating, “We fully expect to continue trading.”
In court submissions, Ryan Perkins, representing Iguanas Holdings, disclosed that the company had sustained a loss of around £10 million in 2025. He underscored that without the backing of The Big Table Group—Las Iguanas’ parent company—it would have been impossible for the chain to remain operational. The looming threat of bankruptcy is tangible should the restructuring proposal not be ratified.
The proposed restructuring plan outlines not only requests for reduced rent but also an offer for financial support from The Big Table Group amounting to approximately £3 million. This infusion of capital is aimed at mitigating operational losses while halting further outflow of funds related to the company’s financial issues.
Recent statistics reveal a troubling trend within the hospitality sector across the UK, with cases of restaurant insolvencies soaring by 46% over the past year. These figures, released by the Insolvency Service, indicate that rapid increases in operational costs and a decline in consumer spending are creating unprecedented pressure on dining establishments.
Chad Moutray, Chief Economist with the National Restaurant Association, has noted that overall costs related to labour and food have surged by 35% since the onset of the pandemic. However, rising expenditure is not limited to these areas alone, as he pointed out that maintenance costs, insurance premiums, taxes, and utilities have all risen dramatically, compounding the financial strain on hospitality businesses.
As Las Iguanas prepares for the pivotal creditor vote, industry observers will be closely monitoring proceedings, keen to understand whether the proposed measures will restore financial health to this beloved chain. For the 44 Las Iguanas restaurants, the outcome of these discussions could decide whether they will remain part of the UK’s culinary landscape or become another casualty of the pandemic-fuelled hospitality crisis.