Sydney restaurants embroiled in controversies that rocked the industry
From The Boathouse Group to Italian favourite Criniti’s, these are just some of the Sydney restaurant empires that have taken dramatic and shocking falls. Read about the downfall for these dining hotspots and others.
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They’re the controversies that rocked the Sydney hospitality industry including family feuds to debt problems, lost luxurious cars
These are the Sydney restaurants and groups which have struggled in recent times and, while some were revived by new owners, others have disappeared entirely from the food scene.
From the ongoing saga of the Italian restaurant empire Criniti’s, the sudden downfall of The Boathouse Group and an unassuming asparagus sauce which resulted in a death at an upper North Shore restaurant, here are their stories.
The Boathouse Group
In August 2019, the owners of The Boathouse Group shocked the hospitality industry when it announced the company had been sold to “rectify financial pressures”.
Andrew and Pip Goldsmith started the business in 2008 and grew it to encompass successful waterfront venues including the Palm Beach, Shelly Beach and Balmoral Beach Boathouse restaurants, Mobys Dicks at Whale Beach and the Whale Beach Deli.
In 2018 it opened the refurbished Patonga Beach Hotel on the Central Coast, renamed The Boathouse Hotel, and also opened the refurbished historic Barrenjoey House.
That was the beginning of the end for the group. The Goldsmiths had to seek new investors after the bold expansion plans led to growing debts and a wind-up action by the Australian Taxation Office.
“The Group’s rapid expansion in the previous year, particularly the opening of The Boathouse Hotel Patonga and Barrenjoey House, resulted in the need to rectify financial pressures and recapitalise,” an official statement read.
The group was sold to brother duo Jono and Ben Isaac who vowed to keep the eateries open and save 500 jobs.
Soon after it was revealed the Goldsmith’s company Spring Sands Pty Ltd, which owns the business name “The Boathouse Group”, was the subject of winding up proceedings by the Australian Taxation Office in the Federal Court.
In August, The Daily Telegraph revealed documents which show trading losses and “inadequate cash flow or high cash use” were blamed by liquidators for the $21.5 million collapse of the group. ASIC records showed that the group’s former businesses left 537 creditors unpaid and also borrowed from each other to stay afloat.
The Goldsmith’s have remained to manage the day-to-day running of the business.
“We were lucky to get some great new people involved to help us continue moving the business forward,” Mr Goldsmith told The Manly Daily. “We just don’t have the same sort of equity in it but our dream is still alive for the business.”
Criniti Group
Popular Italian restaurant empire Criniti’s – once a hotspot for Sydney’s rich and famous – went down quickly, due to $50m debt.
At its height in 2019, Criniti’s had 13 sit-down restaurants across the country from tourism hot spots like Manly to suburban outlets at Wetherill Park with luxury cars spread throughout the outlets.
Seven restaurants closed late last year – including Manly, Wollongong and Kirrawee – as the failing pizza and pasta chain appointed voluntary administrators.
The six remaining outlets were subsequently placed into liquidation in April 2020 before being bought by South Australian group Brunelli’s.
In May 2020, The Daily Telegraph revealed the fallen restaurant empire collapsed with $50 million in debt and more than $33 million owed to the Australian Taxation Office. These figures were highlighted in liquidation documents submitted to ASIC. There are also question marks as to the whereabouts of some of the luxury cars including Ducatis and Harley-Davidsons.
A former staffer described the moments leading up to the closures as a “sh*t show” with liquidators discovering missing money and underpaid staff.
In June 2012, Frank Criniti appeared before court, pleading guilty to charges of domestic violence offences against his ex-wife Rima
Burwood Local Court heard that in the wake of his empire crumbling, Criniti assaulted his wife in public and a teen family member at his home.
Tables Restaurant
The devastating demise of Tables in Pymble, which came after the sudden death of a man, is known far and wide.
There was no deliberate scandal in this case – just an asparagus sauce left on the counter for too long.
Tables was an up-market north shore restaurant, always booked out in advance and the recipient of many top industry awards including Sydney Morning Herald’s Good Food Guide.
In January 2007 William Hodgins, 81, died of a ruptured stomach about 12 hours after taking his wife Audrey to the restaurant for a romantic dinner and eating the snapper.
A coronial inquest heard Mr Hodgins’s snapper was covered in a creamy asparagus sauce that had bacteria spores at 10 times the toxic level.
The inquest found the sauce was up to 48 hours old and had been reheated and cooled a number of times before it made his final meal.
Coroner Jane Culver, in handing down her findings, said the sauce should have been thrown out after four hours but instead it was placed back in a cool room and served to Mr Hodgins.
The tragedy prompted the NSW Food Authority to take further action against the restaurant and examine education changes for the industry at a national level.
Tables, which commented it was deeply saddened by the incident, was fined $19,000 for two charges of failing to comply with the Food Standards Code.
MAdE Establishment
The name George Calombaris is not only synonymous with spectacular Greek cuisine and the much-loved judge on MasterChef – but also a staff underpayment scandal that saw the downfall of Calombaris’s restaurant empire.
MAdE Establishment, which included 22 companies, was put into administration early this year with the immediate closure of 12 restaurants and eateries across Sydney and Melbourne including Jimmy Grants souvlaki outlets at Bondi, Newtown and Sydney CBD.
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It has been revealed that the businesses declined following the $7.8 million staff underpayment scandal.
Calombaris took to Instagram in February to express his regret and sadness.
“My dream for MAdE Establishment 13 years ago was a vision to create something truly special for all those who entered our restaurants,” he posted.
“To all of my team, I truly regret it has come to this. On a personal note, the last few months have been the most challenging I have ever faced. I am so sorry all our collective efforts have not proved to be enough. I’m gutted that it’s come to this.”
The money has since been paid back to staff.
Barenz
Was it a family feud or something more for the popular Camden nightspot Barenz?
All we know is that if a young entrepreneur Kym Van Den Heuvel didn’t intervene and buy the popular establishment, it would be no longer.
In November 2018 Barenz entered voluntary administration, nine years after first opening its doors on Argyle St. The popular nightspot was one of the first bar-type venues to launch in Camden’s CBD.
Luke Leone was a member of the famous Leone family, however was operating the business alone when it went into administration.
The Leone family were well known across the Camden hospitality scene, with patriarch Enzo launching Enzo’s Italian Restaurant, La Bella Vita, Cafe Leone and Barenz.
When the business went into voluntary administration, Enzo Leone clarified that he and wife Laura had not been involved in Barenz since 2017.
“As you may be aware BARENZ was put into Administration by Luke Leone, the previous sole owner/manager,” a statement from Enzo Leone read.
“Enzo and the rest of the Leone Family were not involved in the running of the business and were unaware Barenz was being put into administration until after it was made public.”
Barenz, under the ownership of Kym Van Den Heuvel, continues to thrive as a premier venue today.
