Ritzy food delivery service forced into collapse

Dire economic conditions have forced yet another hospitality company into collapse with its owner announcing its immediate closure on Friday.

Ritzy food delivery service Providoor has become the latest in a long list of formerly bustling businesses to go bust.

The company’s founder, celebrity chef Shane Delia, made the sad announcement to its website on Friday, telling customers the service would be “formally placed into liquidation”.

“It is with a heavy heart that I announce the closure of Providoor, a business borne out of the very worst days the hospitality industry has ever seen,” the message read.

“Later today, Providoor will beformally placed into liquidation.But, effective immediately, we are no longer accepting orders.”

Mr Delia said while Friday was a “very sad day”, he was “proud of Providoor and what it has achieved”.

“We served more than one million meals and built something that made a difference during some very dark days,” he wrote.

Shane Delia announced the collapse of Providoor on Friday. Picture: Supplied

“I created Providoor during lockdown, when the hospitality world was in disarray and we needed to find a way to survive. Providoor meant we could secure and create jobs as well as give people a little bit of restaurant joy during a pretty dismal time.”

Mr Delia cited economic pressures hindering many across the hospitality industry as the cause for the collapse.

“When people kept using Providoor after social restrictions were lifted, it showed us that it was a really good idea. I just wish it had been given the opportunity to work through the challenging economic conditions, the same facing so many in the restaurant and hospitality sector right now.

“So, sadly the Providoor story comes to an end. I want to acknowledge the team, the advisers and our valued restaurant partners who all worked so hard to make Providoor a success.

“And to our loyal customers, thank you so much for your support.”

Economy crushes Aussie businesses

The closure came after grocery delivery app Milkrun permanently ceased operations earlier this month.

Founder Dany Milham sent an email to the company’s 400 employees informing them the delivery company would be shutting up shop for good.

“I’m writing to let you know that we have made the difficult decision to wind down the business, and as a result, MilkRun will cease trading this Friday,” he wrote on April 11.

Mr Milham blamed worsening economic conditions for the collapse of the once-great delivery company which raised $11m before launching in September 2021.

MilkRun became one of the fastest growing startups in the country in 2022 when it banked an impressive $75m funding round led by a US venture capital firm.

It was hailed as a revolutionary service when it launched in September 2021 as one of the first companies to offer ultrafast delivery.

The gourmet food delivery service Providoor has gone into liquidation and has stopped accepting orders.

Rumours are also swirling that some of Australia’s best-loved restaurant chains could be on the chopping block as part of major cost-cutting measures.

It is understood that Quadrant Private Equity’s Pacific Hunter hospitality group is currently investigating loss-making leases at Pacific Concepts, as first reported by the Australian Financial Review.

Pacific Concepts is the arm of the firm behind hit eateries including Mexican-themed El Camino Cantina, Fratelli Fresh and bier hall favourite Munich Brauhaus, as well as The Bavarian, Bar Patron and The Argyle.

It came just days after CreditorWatch industry data from the latest Business Risk Index revealed the hospitality industry was most at risk of default as cost of living pressures begin to bite.

Actual insolvency data recorded this month revealed the food and beverage sector was still at the highest risk of industry insolvency, with 0.97 per cent of businesses going into insolvency on a rolling annual basis in March 2023, followed by the construction industry.