NewsBite

Chin Chin owner Chris Lucas labels George Calombaris a ‘scapegoat’ amid wider industry woes

As George Calombaris watches his empire fall around him, support has emerged an unlikely source. Instead of siding with the masses, Chris Lucas says the issues at play are much bigger than the embattled chef himself.

George Calombaris gives interview after pay scandal

A prominent Melbourne restaurateur has jumped to George Calombaris’ defence — just days after the embattled chef’s hospitality empire collapsed following an underpayment scandal.

Chin Chin owner Chris Lucas made the shock show of support on Wednesday, telling Eddie McGuire’s Hot Breakfast a reform of the industry’s award rates was needed.

“ (Calombaris) has clearly been a scapegoat for what is a significant issue in the economy,” he told the program.

“Our award is so complex. It hasn’t been reformed in years. We are stuck with an inefficient system that is hurting the employees,=.

“If we see this spread throughout the economy there will be tens of thousands of people unemployed.”

The comments come after Calombaris’ work woes turned personal this week when a claim was lodged by Victoria’s Commissioner of State Revenue in January over unpaid land tax for Calombaris’ coastal holiday home, the Australian reports.

This follows administrators trying to mitigate the fallout from the collapse of Calombaris’ culinary kingdom, with 400 jobs left in the lurch.

Administrators say “time is of the essence” and they want to sell-off failed restaurants by the end of the week.

Craig Shepard and Leanne Chesser of KordaMentha. Picture: AAP
Craig Shepard and Leanne Chesser of KordaMentha. Picture: AAP

And the administrators, Craig Shepard and Leanne Chesser, of KordaMentha said 10 to 15 possible buyers had already shown interest since they were appointed.

Made Establishment is the parent company of the restaurant empire and went into voluntary administration at 4.15pm on Monday.

The pair faced a packed press conference at midday as they answered questions about the failed food empire.

They said the selling of the leases and the equipment was the only way forward to possibly save some of the 400 jobs.

“We’d like to see these venues continue. We’d like to see them continue because hopefully if someone does step in they will resurrect them, they will re-employ and they will engage,” Mr Shepard said.

“Since 4.15pm yesterday afternoon, the media coverage has generated interest.”

“We’ve received 10 to 15 parties who have reached out to us already we’ve engaged with, with respect to taking a lease on those venues and making an offer for the plant equipment.”

“My message is to everyone listening if you are interested — you need to move quickly.”

“It is in everyone’s interest to move quickly to enable someone to grab the keys and reopen.”

“If we get an offer that is capable of acceptance I will accept it by the end of the week if I have to.”

“We really need to move fast.”

He said if they don’t get an agreement by the end of the week costs would start accruing with new rent owed.

“From an administrator’s perspective under the Corporations Act we get protection for five days to make a decision in respect to those leases – after five days (we) start incurring rent. And as I said we haven’t got any money so we need to juggle the risk and return.”

“If we can close something out by the weekend that would be great for all stakeholders.”

The administrators said it was impossible for them to trade the business back into health so they would have to find buyers for the venues.

“Unfortunately when we’ve taken the appointment the group is without any funds – without any funds were personally liable — we can’t pay wages, we can’t pay for ongoing liabilities.”

“When we were appointed the business had been closed anyway so for us to try to resurrect it is too difficult.”

Hellenic Republic restaurant in Brighton which is owned by celebrity chef George Calombaris. Picture: AAP
Hellenic Republic restaurant in Brighton which is owned by celebrity chef George Calombaris. Picture: AAP

He said one party that had expressed interest was chef Matt Wilkinson, who ran Crofter Dining in Brunswick with Calombaris.

Wilkinson on Tuesday took to Instagram to say the “door @crofterdining is just slightly closed for a while, but hopefully open soon”.

“I’d like to personally thank @gcalombaris quite simply #nothisfault love ya bud x.”

The restaurant was rebranded from a former Hellenic Republic restaurant last month.

United Workers Union national president Jo-anne Schofield has encouraged workers who felt they were owed money to contact the union.

“Four hundred workers are at risk of losing their jobs. Wage theft is a risky business that puts everyone’s livelihoods at risk,” she said.

“It is devastating to see workers in this predicament.”

Some workers said they discovered the company had gone into administration after Calombaris posted the news on Instagram.

George Calombaris. Picture: Nicole Cleary
George Calombaris. Picture: Nicole Cleary

“I feel very angry about what’s happened. We haven’t been told anything,” a worker who was speaking anonymously said.

“We had to learn that the company was going into administration via George’s post on Instagram.”

The worker claimed that while they had been paid wages they had not received annual leave.

“For workers like me this situation is really scary. I am on a temporary visa and I may have to go home if I can’t keep this job.”

The move came as the embattled celebrity chef put his Toorak mansion on the market.

The ex-MasterChef judge could collect millions from his French provincial-style home, which has just been listed for sale.

It comes about two weeks after the chef sold his four-bedroom Safety Beach holiday house for $1.01 million at an Australia Day auction.

Public records show the grand Toorak home is in the name of Calombaris’ wife Natalie Tricarico.

CoreLogic records show they bought it for $4.75 million in 2013.

MORE NEWS

GEORGE’S STAFF ARE THE ONLY ONES WE SHOULD FEEL SORRY FOR

CHEEKY RESTAURANT GAME PUTS LOVE ON THE MENU

MELBOURNE CAFE SERVES UP 4KG 'MEAT ROD’

The family copped backlash from locals while living at the house after adding a gym to the backyard.

A price guide has not yet been confirmed for the house, which is for sale via an expressions of interest campaign.

It’s understood the couple recently bought another Mornington Peninsula property in Arthurs Seat.

jeff.whalley@news.com.au

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.thechronicle.com.au/news/celebrity-chef-george-calombaris-hospitality-kingdom-on-brink-of-collapse/news-story/655eb4e05564c10c3a08949b8f7d53b6