Adelaide restaurant institution Rigoni’s Bistro goes into administration

One of Adelaide’s best-known restaurants, Rigoni’s Bistro, has gone into voluntary administration over “substantial” debts, with its owner pleading with diners for support to help it survive.

Rigoni’s, on Leigh St, has gone into administration. Picture: South Australian Tourism

One of Adelaide’s best-known restaurants, Rigoni’s Bistro in Leigh St, has gone into voluntary administration over “substantial” tax debts.

Owner Tony Bailey said the eatery, a legendary lunchspot in Adelaide since the late 1950s, was operating “very strongly” but still had to appoint an administrator.

He expressed frustration at not being able to trade out of debt

“Rigoni’s is running really well right now, it’s trading strongly — it’s running the most profitably it ever has,” he told The Advertiser.

“The issue is not current. It’s legacy of debt from previous years when it wasn’t as profitable due to the economic downturn, upgrades to infrastructure in the area and a range of things over the 2014-18 financial year that affected trade.

Tony Bailey in the kitchen with apprentice Millie Heidenreich.

“Those things are all behind us now and the business is trading very strongly with fantastic future bookings and fantastic infrastructure.”

In its heyday, in the hands of the Caon family, Rigoni’s was the lunch venue of choice for the state’s politicians and powerbrokers. Deals were struck, careers made and ended, over steaming bowls of spaghetti and a famous spread of antipasto.

As the sign out front declares, Rigoni’s has been trading in its current location since 1979.

Not all those years have been good for this Adelaide institution, as changes in ownership and shifts in dining fashion, had left it struggling to keep up.

Still, the news today that it has gone into liquidation and its existence is under threat comes as a shock.

Michael Basedow of administrators Pitcher Partners said Rigoni’s owes a debt of more than $100,000 to the taxation office.

Rigoni’s, on Leigh St, has gone into administration. Picture: Simon Cross

“My understanding is that the director had been in discussions with the taxation office for some time but wasn’t able to come up with a satisfactory arrangement,” Mr Basedow said.

Mr Basedow said, however, that he would be “exploring opportunities to sell the business as a going concern”.

“We understand there are a few people interested. We haven’t had any offers yet but we’ll run a short sale campaign to see if there is any interest and we’ll continue to trade until we’ve completed that campaign,” he said.

“I want people to continue to support Rigoni’s while we work through this stage — to give the best possible outcome to everyone concerned,” Mr Bailey said.

“If we’re still trading strongly, the administrator is not going to shut it, so the chance of a sale is increased. I’m thinking about a sale and a smooth transition — I want the brand to keep going and the staff to be looked after. That’s my main concern right now.”

A waiter at Rigoni’s serves customers on Wednesday. Picture: Simon Cross

Sally Neville, deputy chief executive of the Restaurant and Catering Industry Association, said the troubles of Rigoni’s was evidence of the difficulties many businesses faced.

“It’s sad and another indication of how tough it is out there,” she said.

“Rigoni’s has been a long-standing institution and is in a great location. It’s surprising with all that going for it that it can still find itself challenged.

“Considering all the first dates and celebrations, and the deals that have been negotiated, at those tables, people will be shocked.

“But they need to ask themselves when was the last time they ate there. If we want our local restaurants to survive we have to support them and not just be tempted by the new kid on the block. The stalwart restaurants we love still need our support.”

Mr Bailey noted that the impact of Rigoni’s reaches beyond its doors.

Inside Rigoni's Bistro on Leigh St. Picture: Jessica Galletly.

“Staff who started here are now running really good venues — people like Roberto Cardone and his Cibo franchise,” Mr Bailey said. “So much started with Rigoni’s Bistro.”

Writing on Rigoni’s Facebook page, Mr Bailey said: “After protracted negotiations with a substantial creditor, lengthy discussions with my solicitor, accountant and other parties, regarding the future of Rigoni’s Bistro, I was unable to reach an agreement with that creditor.

“While currently trading very strongly and profitably the legacy of debt from previous years has become unmanageable.”

Mr Bailey said he was working closely with the administrator to “achieve the best possible outcome for Rigoni’s Bistro”.

He said he looked forward to Rigoni’s continuing for its staff and creditors.

“I have been extremely fortunate to have an amazing crew of staff in my team both past and present and would like to thank them for their fantastic effort day in and day out, and for everything they have done for Rigoni’s Bistro and my family,” he wrote.

Rigoni’s began trading as Rigoni’s Cafe in 1956 in Moonta St, near the Central Market. It moved to Leigh St in 1979, where it has remained since. The Martin/Bailey families bought the restaurant 13 years ago.