Lobster Cave owner Bill Ferg slapped with near $1m bankruptcy claim

The owner of Melbourne’s famous Lobster Cave restaurant has been slapped with a near $1m bankruptcy claim in a dramatic escalation of his financial woes.

The owner of Melbourne’s famed Lobster Cave restaurant has been hit with a near $1m bankruptcy claim. Picture: Ian Currie

The owner of Melbourne’s famed Lobster Cave restaurant has been hit with a near $1m bankruptcy claim linked to the takeover of a former business.

The Federal Court action marks a dramatic escalation in the financial woes of Vasilios Fergadiotis, better known as Bill Ferg, who has run The Lobster Cave in Beaumaris for close to four decades.

Those woes to date have involved a number of Mr Ferg’s companies which have collapsed into insolvency.

Mr Ferg’s personal assets have so far been sheltered from that fallout as the company structure protects a director’s personal assets provided they have not breached their duties.

A number of Mr Ferg’s companies have collapsed into insolvency. Picture: Facebook

But former Green Earth Industries director Jesus (Harvey) Jimenez is now targeting Mr Ferg’s personal assets as he looks to recoup $930,000 he says he is owed from the sale of the dairy and vegetable wholesaler to the hospitality veteran.

Mr Jimenez initially took Just Foods International – Mr Ferg’s holding company which owned Green Earth – to Victoria’s Supreme Court earlier this year.

He alleged he was owed more than $897,000 because of a deed struck with Mr Ferg over the transfer of Green Earth shares and options.

The court ultimately appointed a liquidator to Just Foods.

If Mr Ferg is declared bankrupt, he will be forced to step down as director from his various companies, and give up his shares.

If Mr Ferg is declared bankrupt he will be forced to step down as director from his various companies.

A search of property records shows Mr Ferg does not currently hold any property in his own name.

The Herald Sun understands one of Mr Ferg’s key assets was a five-bedroom house in Black Rock in Melbourne’s bayside suburbs.

It was owned by the company Lobster Cave Nominees but ownership was transferred to six different parties in 2021, three of which included Mr Ferg’s wife and children.

The property was sold in July for $2.8m.

A sprawling block of land on Beach Road in Beaumaris, which was part owned by a trust linked to the Ferg family, was also sold for $3.4m in June this year.

A string of companies associated with Mr Ferg have collapsed in recent months, racking up more than $11m in debt and leaving creditors facing millions of dollars in losses.

Food wholesaler Extramile Trading collapsed in April with debts of $8.6m.

The Lobster Cave restaurant in Beaumaris. Picture: Mark Stewart

It was previously revealed Mr Ferg – who is listed as the sole director of Extramile – was being investigated for potentially trading while insolvent and engaging in unreasonable director-related transactions in relation to that business.

No findings have been made yet.

Green Earth went bust in May with debts of $856,000 after Mr Ferg was made its director in February.

The hospitality veteran was made the sole director of Marsh Dairy in March.

The business is now in administration with debts of more than $2m but continues to operate.

Mr Ferg’s Lob Nominees – which owns the business name Lobster Cave, as well as the restaurant’s website – is also in court after non-bank lender and buy-now, pay-later service provider Humm Group launched legal action.

If Humm is successful, a liquidator will take control of Lob Nominees.

In May an elderly driver accidentally ploughed into the Lobster Cave. Picture: Facebook

The Lobster Cave made headlines in 2017 when then opposition leader Matthew Guy was spotted having dinner with an alleged Melbourne mafia boss in an incident dubbed “lobster with the mobster”.

In May an elderly driver accidentally ploughed through the Beaumaris restaurant, leaving customers diving for cover.

Mr Ferg was contacted for comment.

Originally published as Lobster Cave owner Bill Ferg slapped with near $1m bankruptcy claim