Former franchisee in Sydney burger chain collapses into liquidation

A former franchisee in a Sydney burger chain has collapsed after a court ordered the venture to shut down due to tens of thousands of dollars in unpaid electricity bills.

A former franchisee in a Sydney burger chain has collapsed after a court ordered the venture to shut down due to tens of thousands of dollars in unpaid electricity bills.

At the end of last month, the Victorian Supreme Court ordered Bass Hill Burger Pty Ltd into compulsory liquidation.

Bass Hill Pty Ltd formerly operated as part of a fast food chain called Flipp Burgers in Bass Hill, based in Sydney’s southwest.

However since February 2023 it has had no further association with, and is not a current franchisee, of the Flipp Burgers franchised system, nor is the franchisor, or the system, associated in any way with Bass Hill Pty Ltd’s failure to pay its own energy bill, or its proceedings in the Court.

Flipp — which has a number of restaurants across Sydney’s north and west, in Parramatta, North Sydney, Mt Druitt, Marsden Park, Auburn and Box Hill — has not gone into liquidation. It told news.com.au its milk bar-style restaurants are thriving.

Its joint at Bass Hill is still trading. It has new owners and has nothing to do with Bass Hill Pty Ltd.

As for Bass Hill Burger Pty Ltd, Robert Ditrich and Andrew Scott of accounting and restructuring firm PwC have been appointed as the liquidators.

News.com.au understands the liquidators are investigating the company’s assets, which appear to have been sold before the company went under.

Bass Hill Pty Ltd has gone into liquidation.

Bass Hill Pty Ltd was ordered to go into liquidation after failing to pay an electricity bill totalling $24,000.

News.com.au understands the business could not settle a debt with its energy provider Covau Energy, and the matter eventually landed in court.

“We are in the early stages of this liquidation and are currently seeking to determine the number of creditors and how much they may be owed,” a PwC spokesperson told news.com.au.

“Creditors should have received an initial report, if they haven’t they should contact us.”

So far liquidators have identified three creditors – the energy company and also the landlord and the tax office.

This is the second restaurant in as many weeks to go under due to unpaid debts to Covau Energy.

Last week, news.com.au reported on another Sydney restaurant, called Little Viet Kitchen, based in Manly in the city’s northern beaches, that was also ordered into liquidation.

The locally-run business failed to settle a debt of $21,034 to its energy provider Covau Energy, and the matter eventually landed in court.

The hospitality scene across Australia has been gutted in a post-pandemic world as the cost of living crisis rages, causing many cafes and restaurants to go bust.

As well as Flipp Burgers Bass Hill and Little Viet Kitchen going bust, two Hog’s Breath cafes in NSW also entered into liquidation last week.

Earlier this month, national restaurant chain Sushi Bay also collapsed, with its last remaining Sydney, Darwin and Canberra branches ordered to shut down, amid allegations that workers had been underpaid $650,000 over a number of years.

In March, a popular bar and burger joint in Melbourne’s inner city, The Beer & Burger Bar, went into voluntary liquidation owing around $500,000 to 10 unsecured creditors.

Also in March, Sydney’s Jellyfish Cafe, in the northern beaches, which specialised in seafood dishes and brunch favourites, went into liquidation after nearly two decades of operation.