Five Criniti’s restaurants to close as future of Italian restaurant chain remains unclear
The future of popular restaurant chain Criniti’s remains under a cloud after its owners voluntarily appointed administrators.
Manly
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The future of a popular restaurant chain hit by the retail spending downturn remains clouded after its owners voluntarily appointed administrators.
But the patriarch of the Criniti family has moved to negate fears that all restaurants would close, stating only “underperforming” restaurants would be on the chopping block.
Cosimo Criniti told NewsLocal five restaurants - Manly, Wollongong, Kirrawee, Brisbane and Perth – would close to ensure the long-term sustainability of the remaining eight.
It likely means dozens of staff will be cut.
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In NSW three of the Criniti’s cafes closed their doors abruptly on Tuesday - Manly, Wollongong and Kirrawee - leaving staff unclear about whether they will lose their jobs.
The state’s other restaurants in Parramatta, Wetherill Park, Castle Hill, Darling Harbour and Woolloomooloo remained open on Wednesday.
“These stores were underperforming, they were losing money,” Mr Criniti said. “The remaining stores will continue to grow long into the future.
“The successful restaurants were having to support the underperforming stores, so our successful stores will now be able to grow.”
Mr Criniti said stores that would remain open were “performing well”.
“We tried,” he said. “We let the underpinning stores run for a while but that was too much.
“The other Sydney stores will continue in a big way”.
Worrells Solvency and Forensic Accountants was appointed as administrator of Criniti’s 40 companies on Monday.
In a statement, Graeme Beattie of Worrells, said: “Criniti’s is a well-known, well-liked chain, but like all hospitality businesses, carries high overheads and is susceptible to any weakening in retail spending.
Mr Beattie said employees were told of decision to wind-up the companies at staff meetings held at restaurants on Tuesday.
“There is never a good way to deliver this kind of news and we understand the shock, disappointment and trepidation felt by Criniti’s loyal staff”, he said.
“While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid”.
Worrells is also looking at refunding gift certificates bought by customers.
In May last year the Australian Securities and Investment Commission disqualified Frank Criniti, from Castle Hill, from managing companies for five years.
ASIC, the corporate regulator, said he was disqualified for his involvement in seven failed companies not related to his restaurants.
Frank Criniti and his then-wife Rima opened the first restaurant in Parramatta in 2003.
Ms Criniti left the business in 2009, after the Darling Harbour restaurant opened, to raise her family and start her own fashion business.
In a statement Rima Criniti said she continued to dine at Criniti’s with her children.
“However, it takes more than fantastic food and hospitality to make a restaurant group a success,” she said. “There are very high costs involved in the hospitality industry.”
In May last year the Australian Securities & Investment Commission disqualified Frank Criniti, from Castle Hill, from managing companies for five years.
ASIC, the corporate regulator, said he was disqualified for his involvement in seven failed companies not related to his restaurants.
Cosimo Criniti said he still had a lot to do with the business, with his daughter continuing to manage operations.
“There is a lot that I would like to say,” Mr Criniti confessed. “But I don’t want to offend anybody.”
A Criniti’s staff member, who asked not to be named, said employees were “locked out” of the Manly restaurant, which opened on West Esplanade in 2013.
On Tuesday evening, makeshift “closed” signs were sticky-taped to its doors and windows; a half-eaten meal was left on a table, dozens of freshly baked pastries were still in their display case and; a TV set was still showing videos.
At 2pm Wednesday, a contractor for the administrator began moving outside heaters into the Manly premises.
When a reporter visited the Darling Harbour cafe this afternoon there were about a dozen diners enjoyed drinks and a mid-afternoon meal on the balcony.
However, most tables inside the spacious first-level establishment remained empty.
Staff seemed confused or else reluctant to speak when asked of Criniti’s woes or their store’s potential closure.
“I have no idea, it is not part of my job,” one said. “You should call the office.”
It was a similar scene at the Woolloomooloo cafe. Shortly after 3.30pm there was just one table being served.
Staff said they did not want to comment on the news