Chilango 'burrito bond' investors could lose 90% of their cash

Bondholders of the Mexican food chain may only get 10p in the pound back

Small investors who sank millions of pounds into a “burrito bond” scheme were this week told they could face losing 90% of their money – or 99% if the company goes into administration. The Guardian revealed on 14 November that UK-based Mexican restaurant chain Chilango was in talks about the future of the business.

That was a blow for the hundreds of people who, as recently as April, signed up for its multimillion-pound mini-bond scheme, which promised returns of 8% a year. The website promoting the bond offer had declared that “100%” of its restaurants were profitable.