Celebrity chef Shane Delia’s collapsed meal delivery firm Providoor defaults on $4 million in gift cards

Thousands of customers of collapsed meal delivery business Providoor have been left with worthless gift cards totalling nearly $4.4 million.

Thousands of customers of collapsed gourmet meal delivery business Providoor have been left with worthless gift cards totalling nearly $4.4 million, according to a report.

The business, founded by celebrity chef Shane Delia during Covid lockdowns as a lifeline to the hospitality industry, entered external administration late last month with Delia blaming economic pressures affecting the whole industry.

Financial records filed by liquidator RSM Australia Partners show Providoor racked up debts of more than $6.3 million, including $4.4 million in gift vouchers held by foodies and corporate clients that cannot be honoured, The Sydney Morning Herald reports.

Providoor also owes $389,000 to former employees, $176,000 in unpaid taxes, and has debts to a number of high-profile restaurants that supplied meals including Entrecote, Supernormal and Rumi.

Shane Delia at Maha North. Picture: Jake Nowakowski

Delia told the newspaper gift cardholders were “justifiably” upset about the losses. He insisted the collapse “never had to happen”, saying a major investor chose to withdraw millions of dollars.

“The only reason it happened is because we lost the confidence of an investor, and they wanted to pull their money out,” he told The Sydney Morning Herald.

“There was a technical breach — a reporting breach [by Providoor] — that they didn’t give us any chance to fix, and they used that to pull the money. It was an oversight. I still honestly believe that the business would still be here, it would still be trading and we’d be navigating through whatever rough waters were ahead of us.”

RSM Australia Partners is attempting to sell the brand, customer database and other intellectual property owned by Providoor.

Announcing the shock closure last month, Delia told customers the service would be “formally placed into liquidation”.

Providoor was created as a lifeline for the hospitality industry during lockdown.

“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 on its website read.

Delia said while it 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.

“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.”

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,” he said.

“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.”

— with Brooke Rolfe

Originally published as Celebrity chef Shane Delia’s collapsed meal delivery firm Providoor defaults on $4 million in gift cards