Criniti’s restaurants saved after buyer comes forward at 11th hour
Two days after liquidators announced Italian empire Criniti’s would be shutting up shop for good with more than $16 million debt, a buyer has come in at the eleventh hour.
NSW
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Two days after liquidators announced Italian empire Criniti’s would be shutting up shop for good with more than $16 million debt, a buyer has come in at the eleventh hour.
South Australian hospitality group Brunelli’s has been revealed to have bought the remaining seven Criniti’s franchises.
Management made the announcement via their Facebook page on Saturday.
“To our valued customers,” it read.
“It has been a difficult period for Criniti’s, but we are so pleased to announce that we are looking positively into the future to rebuild your favourite Italian, focusing on a more fine-dining experience.
“Criniti Group has been taken over by South Australian restaurant giant, Brunelli Group (home of wood oven pizza) who has successfully been operating for the past decade.
“Due to the current COVID-19 situation, we will not be operating any of our restaurants keeping in mind the safety of our customers, staff and our community; however we will keep you all updated when this changes.
“We are confident that the Criniti’s brand will reach new heights under this new management and are excited to be back with a bang, as soon as it is safe to do so.
“Criniti’s will be back! See you all soon! Watch this space.”
It comes after creditors voted this week to close the all remaining Criniti’s locations in NSW and Victoria with a buyer for the company reportedly withdrawing a $6.1 million offer.
Since 2003 Frank Criniti was publicly known as the founder and owner of the Italian empire, however he made his mother Rosa Criniti the director after he landed in financial trouble.
Six locations had already been shut in November and January including Manly, Woolloomooloo, Wollongong and Kirrawee locations and another two in Western Australia and Queensland.
After these closures, administrators Worrells ran a marketing campaign to sell the business, which received substantial interest however according to the report, “The sale process was interrupted by the COVID-19 (coronavirus) pandemic and the purchaser withdrew
their offer.”
The remaining seven venues at Castle Hill, Darling Harbour, Kotara, Parramatta and Wetherill Park are now permanently shuttered, plus two more Victorian locations. Worrells found that of the debt, $15 million was owed to the ATO and the rest to assorted creditors including Qantas, solicitors Uther Webster & Evans, Afdigital and Wireless Edge Networks. Staff are also estimated to be out of pocket tens of thousands of dollars, with a final meeting for employees being held on April 14.
On April 3 Criniti's announced on their Facebook page that they, like many restaurants around the world, would be temporarily closing due to the COVID-19 crisis.
“The wellbeing and safety of our staff, our customers and our community is our number one priority and today, we have decided to temporarily close our restaurants,” the post read.
“To our wonderful Criniti’s family, we want to thank you from the bottom of our hearts, for your love and support during this difficult time.
“We can’t wait to see you soon.”
The national restaurant chain’s financial woes became apparent November last year when administrators were appointed to the struggling franchise and made the decision to close six stores.
Criniti also found himself in personal trouble last month after he plead guilty to assaulting his ex-wife and Criniti’s co-founder Rima Tannous at Castle Towers shopping centre, kicking her and threatening to hit her in the head.
The pair opened their first store at Parramatta in 2003.