Blumenthal ousted from MasterChef amid pay scandal

A war of words has emerged between Crown and the owner of a world-famous restaurant over who’s to blame for the eatery’s unpaid wages scandal and eventual collapse.

Celebrity chef Heston Blumenthal’s restaurant has blamed Crown for the collapse of its high priced eatery, which is in liquidation owing more than $4.5 million in unpaid wages and entitlements.

Tipsy Cake, the company that owned Dinner By Heston in Melbourne, has hit out at Crown, which gave it a peppercorn rent and a free multimillion-dollar fit out.

The company went into liquidation in December when it failed to meet a Fair Work Ombudsman deadline to back pay staff their overtime and entitlements.

The company that owns Dinner by Heston has hit out at Crown over the restaurants collapse.

Tipsy Cake told News Corp Australia that Crown was a “partner” in the business and “who were responsible for advising on the staff remuneration blueprint for the restaurant.”

But Crown rejected the claim saying: “Tipsy Cake at all times was responsible for paying its staff and determined hours and shifts worked.”

It claimed the company was a tenant and not a joint venture.

Dinner By Heston was open for four years, but only made a profit in recent months, with total debts of almost $8 million.

Blumenthal, the celebrity chef, was now trying to find staff new jobs.

Tipsy Cake said in a statement to News Corp Australia: “This has become a very unfortunate and difficult situation. We are saddened for the dedicated and highly skilled employees of Dinner by Heston in Melbourne and are deeply disappointed by Crown’s actions in terminating Tipsy Cake’s lease, which put jobs at risk”.

Dinner by Heston Blumenthal takes out number 1 out of 100 restaurants in 2016. Picture: David Caird

Tipsy Cake said Australia’s wage laws were “complex” and they were among many companies who had misunderstood the rules.

“As soon as Tipsy Cake was made aware that it might have an issue last year, it immediately employed independent professionals to quantify whether any monies were owing and co-operated with Fair Work Australia,” the company said.

“As the financial effect became clearer, including the discovery that there were also significant overpayments of superannuation to some staff, Tipsy Cake tried to discuss constructively with Crown, to work together to find a solution which would be in the best interests of staff.”

Dinner by Heston was located inside Crown.

Tipsy Cake had then had asked Crown for help paying the staff.

“Regrettably, the Crown has not engaged with us or agreed to any proposal which was tabled in order to remediate the employees,” the company said.

“Unfortunately, neither Tipsy Cake nor its holding company were in a position to fund this unforeseen expense and Tipsy Cake was therefore left with no option but to appoint Provisional Liquidators. As a foreign company, Tipsy relied from the outset on the advice given by advisers in Australia and our partner Crown Melbourne, who were responsible for advising on the staff remuneration blueprint for the restaurant.”

A Crown spokesman said: “Tipsy Cake was a tenant and was not in a joint venture or partnership with Crown and to assert otherwise is wrong.

“Tipsy Cake at all times was responsible for paying its staff and determined hours and shifts worked.

“Crown further notes Tipsy Cake’s media statement that “neither Tipsy Cake nor its holding company were in a position to fund this unforeseen expense and was therefore left with no option but to appoint Provisional Liquidators”.

“Crown will work with impacted staff to examine opportunities across the complex.”

MASTERCHEF NO MORE

Blumenthal won’t be returning to MasterChef this year for his usual guest appearances amid revelations a restaurant he fronted underpaid staff by $4m.

Network 10 confirmed the news about Blumenthal to the Herald Sun this afternoon.

“Heston has been a long-time member of the MasterChef Australia family, but he will not be appearing in the upcoming season,” a spokesman said.

MasterChef has been totally reinvented after the exit of its well known trio of hosts – George Calombaris, Gary Mehigan and Matt Preston.

The show will now be fronted by Jock Zonfrillo, Melissa Leong and Andy Allen.

The news about Blumenthal comes amid news the restaurant kingdom of former MasterChef host George Calombaris could appoint a voluntary administrator as early as this afternoon as it teeters close to collapse.

Network 10 did not give reasons for Blumenthal not appearing.

They did confirm he would not be on the show this year.

“Season 12 of MasterChef Australia is currently in production, and we look forward to showing viewers our amazing new judges and an incredible cast later in the year on 10,” the spokesman said.

Gary Mehigan, George Calombaris, Heston Blumenthal, Matt Preston

Last week liquidators of the Blumenthal-fronted Dinner By Heston said the restaurant underpaid staff by more than $4m over three years.

The revelation comes after Crown Melbourne two weeks ago ousted the trouble-plagued high-end restaurant from its base, giving it 14 days to vacate.

The restaurant’s parent company Tipsy Cake Pty Ltd applied for provisional liquidation on December 19 last year.

The restaurant has been run by provisional liquidators Brian Silvia and David Coyne of BRI Ferrier, after being appointed by the Federal Court.

But their report to creditors shows the depth of the problem, and links it to Melbourne’s larger problem of underpaid restaurant workers.

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“The company has quantified amounts totalling $4,044,397 as not having been paid to current employees and former employees for work undertaken between 2015 and 2018 conclusive,” the report says.

“These amounts are underpayments as a result of the company miscalculating entitlements.”

The provisional liquidator has advised that the winding up proceeding of Tipsy Cake is scheduled for a case management hearing on February 12.

A creditors meeting is set for February 17.

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