Tella Balls’ Penrith and Liverpool stores go into liquidation owing large sum of money

Two popular Sydney dessert bar franchises behind a viral sweet treat that took the world by storm have gone into liquidation, owing tens of thousands of dollars. Here’s what we know.

Store owner Simon Kappatos at the Tella Balls Jamisontown store. Picture: Carmela Roche

Two popular dessert bar franchises made famous when their doughnut-based desserts went viral on social media have gone into liquidation, owing tens of thousands of dollars.

Tella Balls Enterprises Pty Ltd, which operated under Tella Balls Penrith, was placed into liquidation on April 15, with Steven Naidenov of Aston Chace Group appointed as liquidator.

The other Tella Balls franchises are unaffected by the move.

The hospitality business is well-known for its dessert menu, which includes freakshakes and its signature Nutella doughnuts, known as Tella Balls.

The Tella Ball Nutella-filled doughnuts and their signature Tella Ball milkshake exploded onto Sydney’s food scene a decade ago, at a time when the opportunity to try and then Instagram an extravagant sweet treat had customers lining up in the streets.

Patrons being served at a Tella Balls store. Picture: Carmela Roche

The business was first registered in March 2019, with Simon Kappatos listed as the owner, according to Australian Securities and Investments Commission records.

NewsLocal understands preliminary investigations have revealed trade creditors to Tella Balls Penrith are owed in excess of $50,000.

Nutella doughnuts at Tella Balls. Picture: Carmela Roche

It is understood to be a contributing factor to the liquidation was a dispute with the landlord.

According to their website, the business is not afraid of putting a sweet spin on traditional foods such as their Tella Fish and Chips, which consists of fried ice cream and doughnut chips.

Additionally, Zeesum, which operated under Tella Balls Liverpool, was also placed under liquidation on April 7 by a NSW Supreme Court order due to unpaid franchise fees.

Mr Kappatos has been asked to comment.

The Tella Ball shake originally exploded into foodstagram consciousness via Mr Kappatos’ cafe Foodcraft Espresso in Erskineville, before the concept was expanded into the Tella Ball eatery franchise.

The chocolate shake is sipped through a straw inserted into the Tella Ball doughnuts.

“It just went mental with customers and on social media over the weekend,” Mr Kappatos said in a 2015 interview.