A High Court judge has approved a rescue plan for the operator of Las Iguanas restaurants, preventing the chain from collapsing into administration.
Justice Meade sanctioned the restructuring scheme at a hearing in London on Friday after the proposal secured support from the majority of creditors.
The arrangement removes approximately £37million in debt owed by Iguanas Holdings Limited to a major creditor.
Parent company The Big Table Group, which also owns Frankie & Benny’s, Bella Italia and Banana Tree, will inject £3million into the business as part of the turnaround plan.
Ryan Perkins, barrister for the company, told the court that Iguanas Holdings was “heavily loss-making” and would have “inevitably” entered administration without the restructuring.
At an earlier hearing, Mr Perkins said the UK casual dining sector had faced “substantial problems” in recent years because of elevated inflation, weaker consumer spending and rising tax pressures.
Iguanas Holdings recorded losses of almost £10million during the 2025 financial year.
Mr Perkins said that despite attempts by Las Iguanas and The Big Table Group to improve the menu and customer experience, trading conditions “remain very challenging”.
Las Iguanas avoids administration after High Court approves rescue deal
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Restaurant insolvencies across Britain increased by 46 per cent over the past year, according to Insolvency Service figures, amid mounting costs and weaker consumer demand across the hospitality sector.
Las Iguanas operates 44 restaurants across the UK and had continued trading only through ongoing financial support from its parent company.
Under the restructuring agreement, landlords will face rent reductions alongside compromises on outstanding debts owed by the company.
Creditors voted on the proposals on May 28 after Justice Hildyard approved the convening of meetings earlier that month.
While the majority of creditors supported the plan, some parties voted against the restructuring
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However, Mr Perkins told the court on Friday: “There are some creditors who voted against (the plan), but none of these creditors appears before your lordship today to contend that the plan should not be sanctioned.”
The restructuring shifts part of the financial burden onto creditors in an effort to stabilise the restaurant operator’s finances.
The Big Table Group has indicated it would stop funding Las Iguanas’ ongoing operating losses without the restructuring plan being approved.
Mr Perkins compared the Las Iguanas arrangement with restructuring plans pursued by other struggling retailers and hospitality businesses including Poundland, River Island and Revolution Bars.
He told the court: “No creditor, even the ones who voted against, has suggested that there is any alternative or better deal.”
Without approval of the plan, the barrister warned the business would have “simply run out of money” and entered administration.
The restructuring process began in early May when lawyers informed the High Court of the company’s deteriorating financial position and looming cash crisis.
Justice Hildyard later approved the creditor vote process, paving the way for Friday’s final court sanction.