High-end restaurant chain The Good Group collapses owing $23m

A high-end steak restaurant chain has collapsed after racking up $23m in debt — and was likely trading while insolvent before administrators were called in.

Botswana Butchery chain The Good Group has collapsed. Picture: Garth Oriander

A high-end steak restaurant chain had racked up $23m in debts and was likely trading while insolvent, before administrators were called in.

Melbourne’s Botswana Butchery, owned by The Good Group, entered voluntary administration early last month after only two years of trade to help navigate the business’ future.

Now a new creditors report, obtained by the Herald Sun, reveals the New Zealand hospitality outfit owed $4.5m to creditors, landlords and suppliers, while a further $9.7m was owed on intercompany loans.

Melbourne’s Botswana Butchery restaurant owed creditors $528,271-- the highest debt racked up out of the company’s seven Australian venues.

The group also owns Botswana Butchery outposts in Sydney and Canberra, as well as Chapel St restaurant Wong Baby and Chadstone’s White and Wongs.

Melbourne’s Botswana Butchery entered voluntary administration early last month after only two years of trade to help navigate the business’ future.

Both White and Wongs and Wong Baby had been unprofitable since opening, the report noted.

Administrators Andrew Sallway and Duncan Clubb, of Sydney advisory firm BDO Australia, recommended the company wind up, leaving more than 200 jobs hanging in the balance.

Botswana Butchery staff, which includes employees across its Melbourne, Canberra and Sydney outposts, were owed a combined $523,804 in annual and long service leave.

A further $479,982 was owed to the Australian Taxation Office.

Administrators concluded a number of factors led to the company’s demise, including Covid 19 pandemic.

“The Good Group Hospitality brand’s Australian expansion unfortunately coincided with the COVID-19 pandemic. The pandemic had a material impact on the financial performance of the Group,” the report said.

Administrators also noted: “We have concluded that the Group was likely insolvent from at least September 2023.”

The swanky steakhouse, which charged up to $390 for a meal, is another casualty in Melbourne’s restaurant scene.

Gingerboy and Izakaya Den were also forced to close last month due to cost of living woes and declining revenue.