Future of Max Brenner stores unclear after liquidators appointed

THE last remaining cafes in the beleaguered Max Brenner chain could shut up shop after the latest devastating move by its owner.

THE future of the last remaining Max Brenner cafes are unclear after the owners of the business halted the Australian licensing agreement and called in liquidators to the operation on Wednesday, according to Fairfax Media reports.

The decision was reportedly made just as the franchise operator, Max Brenner Industries Ltd (MBI), was headed to the Supreme Court of Queensland to wrap up the company which had run the Australian operation, MB Australia Pty Ltd.

Max Brenner cafes have been closing down. Picture: Supplied

“This morning, prior to the adjourned hearing commencing, the licensor terminated the licence agreement on the grounds of default, the default being the appointment of administrators to MB Australia,” administrators from McGrathNicol said, according to Fairfax Media.

Following the cessation of the licence, the court granted MBI, and the former licensor, Strauss Group Ltd, orders to appoint liquidators to the business.

The administrators had been called in earlier this month by the founders of the Australian business, Tom and Lilly Haikin.

Max Brenner founders Lilly and Tom Haikin. Picture: Supplied

A costly renovation of the company’s head office in Alexandria, Sydney, reportedly caused major financial pain — reports suggested the company stopped paying staff superannuation for the last half of 2016.

Twenty of the company’s 37 Australian stores were closed.

“The decision to close stores is always regrettable but in this case we were left with no choice following a store-by-store review of Max Brenner operations,” administrator Barry Kogan said in a statement at the time.

Nine stores remained open in NSW, four in Victoria, three in Queensland and one in the ACT.

Customers line up for the final day of trading at a Max Brenner cafe in Townsville. Picture: Supplied

The Max Brenner brand began in Israel as a small chain of chocolate shops. Founders Tom and Lilly Haikin the expanded the business to Australia, opening their first cafe in Sydney’s Paddington in 1999.

The pair, who made BRW’s Young Rich list in 2013 with a fortune of $40 million, branched out across the country soon after.

The chain’s success saw it spread as far as the US, Japan, Singapore, Russia and China.