Around 200 jobs are at risk after a prominent Australian restaurant chain went bankrupt owing millions of dollars.
The Good Group Australia, which had several upscale restaurants across the country, was placed in administration.
The Good Group Australia was known for its Botswana Butchery chain, which sold steak for around $500 a piece.
It had restaurants in Melbourne, Sydney, and Canberra. It employed 200 people across these locations.
Three other businesses, which also operated under the group’s banner, namely White and Wong’s, Chadstone, and Wong Baby, have ceased trading.
According to a report sent out by the administrators of the Good Group Australia, the company has a huge debt.
Duncan Clubb and Andrew Sallway of BDO Australia revealed that the group has a total debt of almost $10 million.
Some of the company’s creditors include its landlords, suppliers, and employees. It also owes inter-company loans totaling almost $9.3 million.
The Commonwealth Bank is the biggest creditor of the company with a debt of almost $10 million.
Through secured facilities, it’s believed that the bank will be able to get its money back.
In addition to these, the company also owes its landlords almost $2 million in rent.
The landlord of the company’s Melbourne office evicted the group due to its failure to pay up.
The staff members are the biggest creditors, as they’re owed over $500,000 in long service and annual leave entitlements.
Workers are also due around $92,000 from their former employer’s Super fund.
The hospitality group’s related companies also lent the company almost $9 million.
The administrators of the company noted that it also owes the tax department around $3.7 million.
However, they have not included this debt in the total amount due to the department’s failure to provide any proof of its claims.