Norwood restaurant Martini on the Parade in battle for survival

A much-loved Italian restaurant on The Parade is in a battle for survival, as Covid-19 pushes hospitality operators to the brink.

Acclaimed Italian restaurant Martini on the Parade is in a battle for survival as Covid-19 restrictions push more hospitality businesses to the brink.

With the recent lockdown and capacity limits continuing to limit trade, the Norwood venue has appointed restructuring practitioner Oracle Insolvency Services to help restructure and settle its debts to creditors.

The restaurant continues to trade as it works through a new small business restructuring process introduced by the federal government at the start of this year.

Oracle partner Dominic Cantone said the latest wave of lockdowns and ongoing restrictions continued to pose a serious challenge to hospitality operators across the state.

“The hospitality sector has been hit hard by lockdowns and restrictions,” he said.

“A restaurant may only be allowed to have half the customers, but the owners are still paying the full price for electricity, rent and insurance premiums.

Martini on the Parade director and executive chef Larry Piscioneri.

“It’s likely we’ll see more cafes, pubs and restaurants buckle under the pressure and close their doors for good amid spiralling debts.

“With no code of conduct for commercial rent relief, no JobKeeper and debt relief measures wound back it’s a tough economic environment.”

Martini has established itself as one of Adelaide’s leading Italian restaurants since executive chef Larry Piscioneri took over ownership in 2006, training some of Adelaide’s best known chefs including Andre Ursini.

Mr Piscioneri said the restaurant had been “part of the fabric of Norwood” for many years, but Covid-19 had taken its toll.

“Like so many hospitality businesses we have been impacted by Covid,” he said.

“We have always appreciated and valued the support of our customers. It is with their continuing support going forward that we are confident we can move through this and keep serving the community.”

Unlike a typical insolvency appointment, the new small business restructuring process allows Mr Piscioneri to retain control of the business while he develops a debt restructuring proposal.

The proposal, including a creditor repayment plan, will be presented to creditors by early next month ahead of a formal vote.

The simplified regime was introduced to give small businesses, with debts of less than $1m, the best chance of surviving a period of financial distress.

Martini is the first business in South Australia to use the simplified process, but Mr Cantone expects more hospitality operators to go down a similar path as they continue to tackle the economic challenges posed by the pandemic.

“As the restructuring practitioner we assess the debts, contact creditors and assist the directors to formulate an offer that’s put to a vote,” he said.

“The small business restructure process can be a lifeline for business owners, putting them in control as they try to rebuild but there are strict eligibility criteria. This is about getting on the front foot to save a business that’s heading for financial ruin.”