Las Iguanas, a well-known Mexican restaurant chain in the UK, is facing severe financial difficulties. Iguanas Holdings Limited, which operates 47 restaurants nationwide, told the High Court it had fallen into crisis. The company's lawyers warned that without a restructuring plan, the business would simply run out of money. This alarming situation reflects the broader challenges that have undermined the UK casual dining sector in recent years. Had the company secured stronger financial reserves earlier, it might have avoided this predicament.
The proposed restructuring plan aims to eliminate approximately £37 million in debt owed to creditors. Additionally, parent company Big Table Group has committed to injecting £3 million as part of a turnaround strategy. The plan also includes requests for reduced rent at certain locations and compromises on debts owed to landlords. Creditors are scheduled to vote on this proposal at meetings on May 28. If they vote in favour, a judge could formally approve the plan at a hearing on June 5.
The company's financial performance had deteriorated significantly before this crisis emerged. Iguanas Holdings reportedly lost nearly £10 million during the 2025 financial year alone. High inflation, reduced consumer spending, and increased taxes have all contributed to these mounting losses. The company has only been able to continue trading because of interim funding from Big Table. Without this support, operations would have ceased much sooner.
Las Iguanas is not an isolated case in the struggling UK hospitality industry. Several major retailers, including LK Bennett and Claire's, closed all their stores in April 2026. Rising operational costs and shifting consumer behaviour continue to squeeze profit margins across the sector. Industry analysts argue that businesses which fail to adapt their strategies risk insolvency. The outcome of the Las Iguanas restructuring could serve as a precedent for other struggling chains.