George Calombaris’ failed empire most-valuable assets under threat
The main assets of George Calombaris’ 12 failed restaurants are at risk of rotting if a buyer doesn’t quickly swoop in. Administrators are working against the clock to sell off equipment and leases.
VIC News
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Thousands of dollars of food in the fridges of George Calombaris’ 12 shuttered restaurants risks rotting away unless quick buyers can be found, the Herald Sun can reveal.
It is understood the food stores are the main asset of any restaurant and if buyers wait too long the food won’t be worth anything.
Administrator Craig Shepard of KordaMentha is trying to sell the leases and equipment before the end of the week so no more debt is racked up.
“We really need to move fast,” Mr Shepard told media this week.
Industry figures talked to by the Herald Sun on Wednesday said they were expecting “some sales” soon but “nothing is there until signature on paper”.
Up to 15 interested parties have approached administrators.
At top notch restaurants like Elektra diners would pay $85 for a chef’s selection of key dishes such as the “Elektra x Lune butter chicken” and the “Summer squash and taleggio ravioli”. But the ingredients in such recipes could now rot unless buyers are found, the Herald Sun has been told.
Seven Jimmy Grants venues and five fine dining venues – including Elektra, Crofter Dining Room and Hotel Argentina – are on the auction block.
Since Monday afternoon 12 restaurants have been shut and 400 employees out of work after the Made Establishment group which oversees the empire fell into administration, which is now being overseen by experts Korda Mentha.
But it can also be revealed that Made Establishment bosses reached out to KordaMentha almost two weeks earlier on January 29.
They explored “various options available” and the “nature and consequences of insolvency” administration documents show.
Meanwhile Melbourne restaurant owner Chris Lucas has warned of a “domino” of more hospitality failures and has called for a summit to solve underpayment problems.
Lucas – who runs Chin Chin and other venues – said restaurants were simply the “canary in the coal mine” for other industries such as supermarkets, he told Eddie McGuire’s Hot Breakfast.
“Our award is so complex. It hasn’t been reformed in years. We are stuck with an inefficient system that is hurting the employees,” he said.
“(Calombaris has) clearly been a scapegoat for what is a significant issue in the economy”.
At the same time, media reported that in January a claim was lodged by Victoria’s Commissioner of State Revenue over unpaid land tax for Calombaris’ coastal holiday home.
Meanwhile, the impact of the restaurant industry’s wage crisis continued with a judge accepting ‘Dinner by Heston Blumenthal’ will be wound up as it owes at least $10 million in debt, including $4.4m to employees.
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Federal Court Judge David Yates accepted an administrator’s evidence the foreign-registered eatery was insolvent.
Those debts were estimated at $10.8m, including employee debts in excess of $4.4m, a debt of $1.885m to the restaurant’s principals and $1.1m to landlord Crown Melbourne.