Chilango. Credit: Stephen McKay, Geograph

Shoosmiths has picked up a role on Chilango's company voluntary agreement (CVA), as the Mexican chain joins the recent raft of restaurants undergoing a restructuring process, according to a person with knowledge of the situation. 

The chain, which owns 12 restaurants across the U.K., announced its intentions to enter into a CVA last month, and confirmed the proposal for the CVA yesterday (December 9) to "exit non-trading leases, reduce rents in select locations and restructure the company's debt", according to a company statement.

The restaurant's co-founders Eric Partaker and Dan Houghton said in a statement: "Chilango remains profitable at the restaurant level, however in recent years the market in which we operate has changed significantly.

"This proposal allows us to make important changes so we can support our stakeholders and continue serving our loyal guests. We are proud of the strong brand and passionate following our teams have created and look forward to the future."

The Shoosmiths team is being led by corporate restructuring partner Aaron Harlow.

The mandate is the latest in a string of high-profile restructurings for Shoosmiths, having advised fashion chain Monsoon on a legal challenge launched by British Land in September. And earlier this year, the firm picked up a lead role on the administration of now-defunct airline Monarch's engineering arm. 

The firm recently grew its corporate restructuring team with the hire of partner Lee Sennett from Ince Gordan Dadds in October.

Chilango is the latest in a wave of well-known retail and restaurant brands to face uncertain futures and opt for the CVA route, whereby they bid to renegotiate terms with creditors and stay afloat.  

Earlier this year, restaurant chain Pod fell into administration, with Travers Smith and Charles Russell Speechlys picking up roles. This followed the administrations of Jamie Oliver's restaurant business and Patisserie Valerie, both of which Gateley acted on.

Elsewhere in the restaurant sector, DLA Piper picked up a role on Gourmet Burger Kitchen's CVA, while Herbert Smith Freehills, Pinsent Masons and Jones Day advised in the restructuring of British burger chain Byron.