Texts of hospitality boss leaked in fallout of companies collapsing owing $11m, flagship restaurant at risk of closure

The text message of an embattled hospitality boss has been leaked amid revelations which have rocked his staff.

The boss of an embattled hospitality empire has tried to tamp down concerns that his flagship business could be at risk of closure.

This week, news.com.au reported that Melbourne’s lavish Lobster Cave is facing the possibility of being forced into liquidation after a creditor began court proceedings to have the business wound up.

The seafood restaurant’s sole director, Vasilios Fergadiotis, who goes by Bill Ferg, was also revealed to be linked to three other company collapses in recent months with total debts of more than $11 million.

As staff were left reeling from the revelations, Mr Ferg sent a text message, which has been obtained by news.com.au, trying to water down their fears over the “unsettling” news.

In the text message, which news.com.au understands was sent to about 25 staff, he said that Lobster Cave continues “to thrive and succeed” thanks to its loyal employees.

“I want to be crystal clear: nothing has changed at the Lobster Cave,” Mr Ferg wrote.

“Our Lobster Cave business is trading strongly, and we continue to move forward with the same drive and passion that have always guided us.”

He added that the problems of his other businesses are not the problems of Lobster Cave.

“I have full confidence in our continued success at the Lobster Cave, and I am committed to ensuring that we all move forward together, stronger than ever,” he finished.

The text message sent to staff in response to news.com.au’s article.

“We are limited in what we can say at this time because of litigation and negotiation matters, as we deal with the challenges,” Mr Ferg previously told news.com.au.

At the end of August, a creditor issued a winding up notice against Lob Nominees Pty Ltd, which has a business name of Lobster Cave.

Aussie fintech Flexicommercial, part of buy now pay later business humm Group, lodged winding up proceedings against Mr Ferg’s lobster business, according to an ASIC notice.

The hearing is due to take place later this month at the NSW Supreme Court, on September 16.

Another of Mr Ferg’s businesses, Just Foods International, also faced court last Wednesday because a creditor is trying to force it into liquidation to recover what they claim is a $897,000 debt.

The case was adjourned until September 18.

Mr Ferg has also been linked to three wholesale businesses which have gone under in recent months with multiple millions of dollars worth of debt between them.

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Lobster Cave has been in business for 37 years.

Bill Ferg has said Lobster Cave isn’t going anywhere.

Mr Ferg is also the sole director of Extramile Trading, which he had been running since 2017 but it went into liquidation earlier this year with debts of $8.6 million.

Extramile operated as a wholesaler of dairy, meat and seafood to the hospitality and food service industry.

There are 64 unsecured creditors owed $7.225 million, according to a statutory report the appointed liquidator, Stephen Dixon of insolvency Hamilton Murphy, submitted to the corporate regulator last month.

The business, which had five employees, has since closed down.

In May, Green Earth Industries, a wholesale distributor of dairy and vegetable products, went bust with debts of $856,000.

It mostly sold butter, cheese and vegetables, with the company acting as a broker between the original supplier and major manufacturing customers.

Mr Ferg was made its director in February this year, three months before the business failed.

There was just $121 left in the bank account of Green Earth when the liquidator took over.

Mr Ferg was also recently made the sole director of Marsh Dairy Products, a business originally founded in the 1930s specialising in the distribution and packaging of dairy products.

Marsh Dairy is now in administration with debts of about $2.5 million but continues to operate.

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Originally published as Texts of hospitality boss leaked in fallout of companies collapsing owing $11m, flagship restaurant at risk of closure