Adriano Zumbo will continue to trade despite being placed into voluntary administration

DESSERT king Adriano Zumbo’s sugar-laden empire will continue trading while in voluntary administration, the group’s administrators say.

DESSERT king Adriano Zumbo’s sugar-laden empire will continue trading while in voluntary administration, the group’s administrators say.

DW Advisory principals Justin Holzman and Anthony Elkerton say they are hopeful the future of the ailing business can be secured through a restructure.

It emerged this week that Mr Holzman and Mr Elkerton had been appointed administrators to three of Mr Zumbo’s businesses on July 22.

The three companies, 611, Mel611 and I’m So Fancy, employ about 130 people and operate three patisseries in Melbourne and five in New South Wales.

COMPANY REPORTEDLY PLACED IN ADMINISTRATION

FROM SHY TROUBLEMAKER TO DESSERT KING

KITCHEN SECRETS OF MASTER CHEF

“We’re still continuing to trade as normal (and) we are hopeful that there will be a restructure by way of a deed of company arrangement,” Mr Holzman said on Thursday.

“That’s something we are investigating over the course of the next two weeks and we will be providing creditors with a further report in two weeks’ time.”

The businesses are believed to owe creditors millions of dollars.

Mr Holzman said the list of entities owed money included “a large secure creditor”, the Australian Taxation Office and various landlords, suppliers and other trade creditors.

Adriano Zumbo at his shop in Pyrmont.

There were also employees with entitlements owing, Mr Holzman said.

A creditor’s meeting will be held in three weeks.

Mr Zumbo’s management team declined to comment.

It was revealed on Wednesday that Mr Zumbo’s boutique patisserie empire was struggling to repay millions of dollars in debt. The company’s website was then taken down, its phone went unanswered and Mr Zumbo did not return calls.

Its debts are believed to be up to $10 million, however this figure could reportedly be offset by $8 million in assets such as equipment and properties owned by the The Zumbo Group.

Mr Holzman on Wednesday said the biggest creditor was a major bank, followed by the Australian Taxation Office. “There is a bank that is a secured creditor, the ATO are a large creditor, and they (the Zumbo businesses) obviously have some suppliers and trade creditors,” he said.

The administrator said he was determining where The Zumbo Group went wrong, and how its debts had spiralled out of control.

Mr Holzman said he was drafting his next report, which will be distributed to creditors later this month.

Mr Zumbo, a trained pastry chef who has worked in Australia and France, opened his first store at inner Sydney suburb Balmain, selling his popular macarons and signature cakes.