Another business linked to Lobster Cave owner goes bust

Another business linked to the owner of Melbourne’s famed Lobster Cave restaurant has been forced into liquidation as the future of his high-profile eatery remains under a cloud.

The financial woes for the owner of Melbourne’s famed Lobster Cave restaurant have deepened with another one of his businesses forced into liquidation.

The financial woes for the owner of Melbourne’s famed Lobster Cave restaurant have deepened with another one of his businesses forced into liquidation while the future of his high-profile eatery remains under a cloud.

A string of companies associated with Vasilios Fergadiotis, better known as Bill Ferg, have collapsed in recent months, racking up more than $11m in debt and leaving creditors facing millions of dollars in losses.

The hospitality veteran is also being investigated for potentially trading while insolvent and making unreasonable payments to associated businesses.

The latest blow was delivered in the Supreme Court of Victoria last week when Just Foods International, a holding company for a number of Mr Fergadiotis’ food ventures, had a liquidator appointed to it.

A string of companies associated with Vasilios Fergadiotis, better known as Bill Ferg have collapsed in recent months. Picture: Ian Currie

Mr Fergadiotis is listed as the director and secretary of the company which houses various businesses linked to the hospitality head honcho including Green Earth Industries and Marsh Dairy Products.

The case landed in court over a dispute linked to Mr Fergadiotis’ takeover of the Green Earth businesses.

The previous Green Earth director, Jesus (Harvey) Jimenez, alleged he was owed more than $897,000 because of a deed struck with Mr Fergadiotis over the transfer of shares and options, court documents reveal.

Mr Fergadiotis’ claimed he didn’t need to pay the amount because Mr Jimenez had failed to provide him with adequate financial records and properly inform suppliers of the change in ownership.

He also alleged there was a big drop off in sales after he took over the company.

The court ultimately rejected these allegations and appointed FTI Consulting’s Paul Harlond as liquidator.

Mr Harlond said he is still determining how much is owed to creditors and the “circumstances leading to the winding up”.

The future of his high-profile eatery, Lobster Cave, remains under a cloud. Picture: Mark Stewart

Green Earth, a wholesale distributor of dairy and vegetable products, went bust in May with debts of $856,000 after Mr Fergadiotis was made its director in February.

Mr Fergadiotis was also made the sole director of Marsh Dairy in March.

The business is now in administration with debts of more than $2m but continues to operate.

Just Foods’ balance sheet shows it had a net total assets of just under $2m, all linked to Green Earth.

It also shows a complex web of loans made by the businesses to other companies operated by Mr Fergadiotis, including Green Earth and Lob Nominees.

Lob Nominees owns the business name Lobster Cave, as well as the restaurant’s website.

It is in court after non-bank lender and buy-now, pay-later service provider Humm Group launched legal action.

If Humm is successful, a liquidator will also take control of Lob Nominees.

The Lobster Cave made headlines in 2017 when then opposition leader Matthew Guy was spotted having dinner with an alleged Melbourne mafia boss in an incident dubbed “lobster with the mobster”.

In May an elderly driver accidentally ploughed through the Beaumaris restaurant, leaving customers diving for cover.

An elderly driver accidentally ploughed through the Beaumaris restaurant in May. Picture: Facebook

Another company associated with Mr Fergadiotis to have collapsed in recent months include food wholesaler Extramile Trading which collapsed with debts of $8.6m in April.

It was previously revealed Mr Fergadiotis – who is listed as the sole director of Extramile – was being investigated for potentially trading while insolvent and engaging in unreasonable director-related transactions in relation to that business.

If the claims are ultimately proven it would mean Mr Fergadiotis would lose the legal protection a company structure offers and the liquidator could target his personal assets, such as any property he owned.

Mr Fergadiotis was contacted for comment.

He previously wrote to his Lobster Cave customers on the business’s Facebook page earlier this month, denying that “issues” for his other businesses would affect his restaurant.

“The fact is that it is business as usual at Lobster Cave. Nothing has changed at Lobster Cave or in how we operate,” he wrote.

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