LONDON — Las Iguanas, the UK's popular Latin American-inspired restaurant chain known for its vibrant atmosphere, sizzling fajitas and bottomless cocktails, is fighting for survival as its parent company warns it could run out of money without a major financial overhaul.

Las Iguanas, the UK's popular Latin American-inspired restaurant chain
Las Iguanas, the UK's popular Latin American-inspired restaurant chain

Iguanas Holdings Limited, which operates around 44-47 Las Iguanas sites across Britain, told the High Court it faces immediate collapse without approval of a restructuring plan aimed at slashing £37 million in debt and renegotiating leases. The dramatic development has put hundreds of jobs at risk and sent shockwaves through the casual dining sector already battered by rising costs and softening consumer spending.

On May 7, the High Court granted permission for the restructuring to advance to a creditor vote scheduled for May 28. The plan includes a £3 million capital injection from owner Big Table Group and significant debt write-offs for loan notes and landlords. Without the approval, the company has warned it will have "no funding to continue trading" and could fall into administration.

A chain born from Bristol passion

Founded in 1991 in Bristol by Eren Ali and Ajith Jaya-Wickrema, Las Iguanas built its reputation on colorful, upbeat restaurants serving Mexican, Brazilian and South American-inspired dishes. The chain expanded rapidly, peaking at more than 50 sites before ownership changes. It joined Big Table Group (alongside Bella Italia and Café Rouge) in 2015 and became known for lively happy hours, bottomless brunches and sharing plates that appealed to groups and younger diners.

The brand's tropical decor, upbeat music and cocktail-focused offering helped it stand out in the competitive mid-market dining scene. Signature items include stacked fajitas, enchiladas, burritos and a wide range of mojitos and margaritas. Many locations became local favorites for celebrations and after-work drinks.

Perfect storm of challenges

Big Table Group CEO Alan Morgan described the sector as "very challenged," particularly for wet-led (alcohol-heavy) concepts like Las Iguanas. Post-pandemic recovery has been uneven, with soaring energy bills, ingredient inflation, staff shortages and a noticeable drop in discretionary spending hitting casual dining hard.

The company has already closed some underperforming sites in recent years. Reports suggest only a small number of additional closures are expected under the restructuring, but the exact figure remains unclear pending creditor approval. Morgan called recent media coverage "sensationalist" while stressing the proactive nature of the court process to safeguard the brand's future.

Impact on staff, suppliers and communities

Hundreds of employees across the UK face uncertainty. Many locations employ dozens of workers, from kitchen teams to front-of-house staff who have built careers around the chain's fun, high-energy environment. Suppliers of fresh produce, tequila and specialist ingredients could also feel the ripple effects if trading is disrupted.

Local economies in towns and cities hosting Las Iguanas restaurants stand to lose vibrant dining destinations that often anchor high streets and leisure developments. Fans have taken to social media expressing disappointment and sharing memories of birthday meals, date nights and group outings.

Customer experience and reviews

Despite the financial woes, many diners continue to praise the chain's atmosphere and value. Tripadvisor and Trustpilot reviews highlight generous portions, friendly service and lively vibes, though some note inconsistencies across sites and criticisms of pricing during non-happy-hour periods. The popular Bottomless Tapas offer on Tuesdays and cocktail deals remain major draws for budget-conscious customers.

Broader casual dining crisis

Las Iguanas' troubles reflect wider struggles in the UK restaurant industry. Rising costs, changing consumer habits toward home dining and delivery, and the lingering effects of the cost-of-living crisis have forced many chains to restructure or downsize. Big Table Group's move follows similar actions by other operators seeking to shed debt and renegotiate leases in a tougher trading environment.

Industry observers say successful restructuring could stabilize the brand and allow it to emerge leaner. Failure to secure creditor approval, however, could lead to swift administration and widespread closures.

What happens next

The creditor vote on May 28 will be pivotal. If approved, the plan could enable Las Iguanas to continue operating with reduced financial burdens and a fresh injection of capital. Big Table has committed to supporting the brand through the process.

For diners, the immediate message is business as usual at open sites while the company works through the legal steps. Regular customers are encouraged to check individual restaurant pages for any temporary changes.

A beloved brand at a crossroads

Las Iguanas has weathered previous challenges, including the pandemic closures and ownership transitions. Its survival would preserve a slice of colorful Latin American flair on the UK high street and protect jobs in a sector desperate for good news.

As the countdown to the crucial creditor vote begins, the future of this once-booming chain hangs in the balance. Fans, staff and the wider industry will be watching closely to see whether Las Iguanas can dance its way through these turbulent times or whether the music risks stopping for good.