Richmond Hill Cafe & Larder, the iconic cafe and provedore opened in 1997 by legendary chef Stephanie Alexander and prominent cheesemonger Will Studd, has potentially closed for good. Employees arrived on Tuesday morning to find the locks changed and security guards positioned on the door.

This may come as a shock to Melburnians whose knowledge of the institution dates back to its early years. Alexander's seasonal menus, Studd's cheese room stacked with international and local cheeses and the hyper-local selection of beers and small producer wines were groundbreaking at the time.

The duo have been out of the business for almost two decades. Studd departed in 2002. Alexander sold her share in 2005. Neither has been involved in the business since selling their share. And while the business continued to push the same offering in subsequent years and through multiple owners (some recipes are still Alexander's and until recently, many suppliers had been on the books for 20 years) employees claim that the business has been in decline since owners Syed Zunnurain and Sarahat Chowdhury bought it two years ago.

According to a senior employee, who didn't wish to be named, difficulties arose after Christmas when the large invoices from the busy December period were unable to be paid.

"Suppliers were calling constantly asking to speak to accounts, and others were walking in demanding payment and refusing to leave," the employee said. When the invoices remained outstanding, the business was placed on a stop credit and deliveries ceased.

The employee claims conditions became immensely stressful. They were faced with a shortage of day-to-day essentials. When they ran out of coffee, the staff member said they resorted to serving their decaf instead of admitting the cafe had none. There were days when the cafe ran out of eggs and bread.

"It became normal to have to run to the supermarket," said one employee who also claims they personally purchased some supplies at their own expense to cover a shortfall.

When contacted by the Age, Mr Zunnurain said he was in discussions with the landlord and hoped to find a solution "hopefully within a few days". He said rent was "very high" but that the business had not been shut. He said staff, owed weeks in unpaid wages, would be repaid "100 per cent".

Staff, uncertain they will be paid their wages or be compensated for expenses they incurred on behalf of the business, are seeking legal counsel.