The Mexican restaurant chain Chilango is not only facing the impact from Covid-19 crisis, it is also facing something of a shareholder revolt.
After placing itself into administration and looking to find a buyer at the same time, investors are being widely reported to be furious claiming long standing mismanagement and little adherence to corporate governance.
Much of the anger centres around an offering to finance expansion in London referred to as ‘burrito bonds’. The criticism from investors was triggered by a letter to them advising that the business was being placed into administration. Some investors are now questioning the whole ‘burrito bonds’ exercise and its validity.
Earlier similar claims and questions were made at the end of 2019 when Chilango’s accountants, Grant Thornton would not sign off the company accounts.