More than 700 jobs are set to be saved after the Gaucho restaurant chain was bought out by its lenders.

Investec Bank and debt specialist SC Lowy, who were together owed about £50m by Gaucho’s parent Gioma, plan to acquire the Argentinian-themed chain’s 16 restaurants which employ 750 people via a credit bid.

The deal is dependent on the successful completion of an insolvency procedure known as a company voluntary arrangement, which will enable the company to shed liabilities including leases linked to Gioma’s defunct Cau chain as well as tax and trade debts.

A spokesman for Investec said: “We have supported Gaucho since 2016 and continued to provide support to the business through the difficult conditions experienced in 2018. We know the Gaucho team well and have significant confidence they can reinvigorate and grow the Gaucho brand.”

Creditors will decide whether to approve the CVA on 19 September and the buyout is likely to be finalised by mid October after a 28-day period during which landlords and other creditors are able to challenge the legally binding deal.

Accountants from Deloitte were appointed joint administrators to the owner of the Gaucho and Cau chains in July leading to the immediate closure of the 22-strong Cau restaurant chain which employed 540 people. The Gaucho chain continued to trade while Deloitte sought a buyer.

Gioma examined a number of potential restructuring options but ran into crisis when a tax bill of more than £1m became due in July.

Matt Smith, a partner at Deloitte, said: “We are delighted Investec and SC Lowy have agreed to purchase Gaucho, which offers the best outcome for all parties. Gaucho is a profitable and successful business and with the support of its new owners can now focus on its future growth plans.”

Gaucho is among a string of high street dining chains to run into trouble amid a squeeze on consumer spending and over-expansion fuelled by private equity investors. Prezzo, Byron and Jamie’s Italian have shut outlets and cut hundreds of jobs while veteran restaurateur Sir Terence Conran’s Prescott & Conran venture called in administrators in June.

Upmarket burger chain Gourmet Burger Kitchen, which has more than 90 sites in the UK, is also thought to be considering a CVA as a way to renegotiate rents and shut stores.