Las Iguanas to launch urgent restructuring amid bankruptcy fears over 47 sites

Iguanas Holdings Limited, the operator of the Mexican restaurant chain Las Iguanas, has introduced a court-approved restructuring plan amid growing bankruptcy fears, threatening the closure of its 47 chains.

Justice Hildyard, the High Court judge, approved the calling of creditors meeting regarding restructuring plan after the company’s lawyers pleas, who informed the High Court on May 6, 2026 regarding worsening financial conditions and potential cash crunch.

Las Iguanas is set to convene creditors meetings to vote on a restructuring plan aimed at saving 47 UK restaurants from administration.

The creditors will vote on the proposal on May 28. If approved, the court will provide final sanction on June 5.

The aim of the restructuring plan is to avoid insolvency for the 47 UK locations. The plan demands rent reductions and compromises on outstanding landlord debts.

The proposal shifts the financial burden onto creditors to reduce the immediate pressure on the estate.

Big Table Group has pledged £3 million in new funds but has signalled it will stop funding current operating losses.

Worsening financial conditions

The Mexican restaurant chain is facing severe financial conditions marked by heavy debt load and high food and labour costs. The company owes £37 million to a single primary creditor.

As a part of new investment, Big Table Group has pledged 3 million in new funds but has signaled it will stop funding current operating losses.

According to the National Restaurant Association Chief Chad Moutray, "Well, we've seen overall labor and food costs go up 35% since the pandemic. But it's not just those costs. We've seen insurance and taxes and everything else go up, utility costs, et cetera."

The sector of casual dining is experiencing broader industry challenges due to increased taxes, inflationary pressures, and declined consumer spending.

According to legal representative for Las Iguanas, Ryan Perkins, the market environment is set to be volatile even in the backdrop of efforts by Iguanas Holdings and its parent company, Big Table Group.

"The number of restaurant insolvencies in the U.K. has jumped 46% in the last year as rising costs and a downturn in consumer spending pummel the hospitality industry, according to Insolvency Service numbers," Perkins said.

"Now, if a restructuring plan isn't approved, the company will have 'no funding to continue trading' and could fall into administration,” as reported by Swindon Advisor.