Administrators announce next step for George Calombaris’ failed hospitality empire
Three of George Calombaris’ 12 restaurants have been sold, with administrators working to negotiate as many sales as possible before the failed empire starts accruing costs.
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ONE OF Melbourne’s top American-style barbecue experts will take over George Calombaris’s original Hellenic Republic site in one of three lease deals struck yesterday by administrators of the chef’s collapsed food empire.
KordaMentha Restructuring yesterday announced the first asset sales in the administration of Calombaris’s MAdE Establishment group.
Administrators Craig Shepard and Leanne Chesser said they had agreed on terms for the sale of assets and the assignment of leases for the restaurants in Brunswick, Kew and Brighton.
Mr Shepard said the purchasers of the Kew and Brighton venues had experience in the hospitality industry and were planning to contact former employees of the two restaurants to discuss new job opportunities.
“We are pleased to see three of the venues reopening,” Mr Shepard said.
“There has been enormous interest in the venues, but transitioning the businesses has been complex and time-consuming.”
The rebranded Crofter Dining site has been taken over by husband-and-wife team Andrew and Pam Kavanagh, who run barbecue-focused The Que Club in Fitzroy North.
Andrew Kavanagh confirmed to the Herald Sun the business would be relocating to the Crofter site, possibly with a soft opening in mid-March, and the Que Club would expand its dinner hours.
The growth would mean taking on many of former Crofter chef Matt Wilkinson’s suppliers and also possibly former staff.
Asked what it was like to step into one of the venues, Mr Kavanagh said it was “quite surreal”.
“It does have a bitter sweetness,” he said.
“I am very close to Matt Wilkinson, I would have loved to have seen his legacy continue after what happened, but that hasn’t happened.”
“Having said that, I’m very appreciative it is us. It is a super iconic site. To have Matt’s DNA in that kitchen means I have a responsibility to continue that legacy.”
The identity of the other buyers is not yet known but could be unveiled at the first meeting of creditors today. The meeting, at 3pm in Melbourne, will include representatives from the Commonwealth Bank, which is believed to be owed up to $10 million.
Administrators had hopes of a quick sale of leases by Monday this week but despite high levels of interest from at least 15 buyers, closing the deals has been difficult.
More than 400 staff have remained in limbo as administrators try to find new owners to keep some of the 12 venues open.
Calombaris’ MAdE Establishment business on February 10 appointed restructuring experts KordaMentha over 12 restaurants as it collapsed into voluntary administration.
The drawn out talks meant the administrator’s five day rent free period – which covered last week – ended and rent could start accruing.
Landlords are said to be working with the administrators KordaMentha to try to get deals and avoid a long drawn out vacancy.
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KordaMentha are not expected to drag out the sales process for too long a time as the business is without funds — so cannot accrue more debt.
Administrators Craig Shepard and Leanne Chesser, of KordaMentha, have said up to 15 parties were interested in the leases and other assets such as fittings and furniture.
Calombaris has put his Toorak mansion on the market.
It is believed Calombaris and major investor Radek Sali are expecting to get nothing back from the administration fire sale.