Restaurant chain on brink, 180 jobs at risk
Woes continue in the hospitality industry as a five-venue restaurant chain has called in administrators in the hopes of saving the ailing business.
Woes continue in the hospitality industry as a five-venue restaurant chain has called in administrators in the hopes of saving the ailing business.
Six businesses, which comprise the steakhouse chain Elements Bar & Grill, with restaurants in the Sydney inner-city locations of Darlinghurst, Pyrmont, Woolloomooloo and Haberfield, and sister venue Elements Seafood Grillhouse in Walsh Bay, all went into administration on March 21.
Administrators John McInerney and Philip Campbell-Wilson of Grant Thornton have been appointed by owners and directors Tasso Konstantakos and Kazi Navid Haq to run the business.
Mr Konstantakos and Mr Haq have been contacted by news.com.au for comment.
In a statement, Mr McInerney told news.com.au: “The restaurants and shared head office will continue to trade during the voluntary administration period”.
He added that all of the companies’ approximately 180 staff, including full-time, part-time and casual employees continue to be employed.
Mr McInerney said a “preliminary review of the companies’ financial position by the administrators suggests the primary creditors are likely to be the tax office and related entities, although this is subject to further detailed investigation.”
He added that “the object of the voluntary administration is to attempt to preserve the value of the business and to provide the owners with an opportunity to consider a formal restructuring plan”.
The administrators are seeking proof of debts from creditors and a creditor’s meeting will be held on April 4.
The companies under administration are K & T Trading Pty Ltd (trading as Elements Bar & Grill Darlinghurst, Elements Bar And Grill Woolloomooloo Pty Ltd, Elements Bar & Grill Walsh Bay Pty Ltd, Elements Bar & Grill Haberfield Pty Ltd, Elements Bar & Grill Pyrmont Pty Ltd and Elements Holding Group Pty Ltd.
According to its website, Elements Bar & Grill was established in 2018, while Elements Seafood Grillhouse in Walsh Bay opened in August 2023.
Steaks at the venues sell for as much as $189.
In 2022 the Pyrmont venue was awarded best new restaurant in NSW at the Restaurant and Catering Awards.
The news follows the recent collapse into liquidation of Mexican restaurant Checho’s, in Sydney’s outer western suburb of Penrith, with tough hospitality trading conditions for the restaurant’s demise.
Another Sydney restaurant chain, Bondi Pizza, put three of its sites, in Parramatta, Macquarie Park and Eastgardens in Sydney’s southeast, into administration earlier this month, with either a sale of restructure of the business being considered.
This financial year, hospitality insolvencies are up 53 per cent and new statistics from the CreditorWatch Business Risk Index for February show that businesses in the food and beverage services sector remain the most at risk of business failure “by a considerable margin” with Western Sydney business at highest risk of failure.
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