New woes for George Calombaris after attempt at quick sale dashed

Embattled TV chef George Calombaris’ week from hell appears to have somehow worsened, with hopes of a quick sale of his food empire’s leases now dashed. But insiders say a resolution is inevitable — sooner rather than later.

Embattled TV chef George Calombaris was pictured in Melbourne as administrators move to sell the leases in his collapsed food empire. Picture: Media Mode

Hopes of a quick sale of leases in George Calombaris’ collapsed food empire being locked down today appear to have been dashed.

More than 400 staff are set to remain in limbo as administrators try to find new owners to keep some of the 12 venues open.

Any deals are now expected to be announced by the creditors meeting on Thursday in Melbourne.

The door could still be ajar on several venues with ­buyer interest in Gazi and Jimmy Grants ­venues.

Calombaris’ MAdE Establishment business last Monday appointed restructuring experts KordaMentha over 12 restaurants as it collapsed into voluntary administration.

There were hopes deals could start being signed by today after feverish negotiations over the weekend.

Administrators are moving to sell the celebrity chef’s venue’s leases. Picture: Media Mode

Calombaris and a friend caught up near his Melbourne home. Picture: Media Mode

The drawn out talks now means the administrators’ five-day rent free period is now over and rent can start accruing.

It is understood to create even more pressure on the negotiations over the voluntary administration.

It is believed the Commonwealth Bank is to be owed between $5 million and $10 million. The Australian Taxation Office is also said to be a creditor.

But landlords are said to be working with the administrators KordaMentha to try to get deals and avoid a long drawn out vacancy.

Some landlords are understood to be positive about possibly “imminent” deals.

Calombaris recently put his Toorak mansion on the market. Picture: Media Mode

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.

Despite hopes for some deals, it is understood it is still too early to say what shape final deals will take.

But the Herald Sun is being told by industry insiders that the process “cannot go on indefinitely”.

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.

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