Italian restaurant chain Criniti’s has collapsed, with administrators Worrells Solvency and Forensic Accountants NSW & ACT appointed to oversee the companies on Tuesday 18 November.
The Criniti Group operates 13 Criniti’s Italian venues across Brisbane, Sydney, Melbourne and Perth with 40 companies involved in their operation.
According to Worrells, employees were informed of the decision to wind-up the companies on Tuesday morning.
Poor economic conditions were blamed for the business’ demise. “Criniti’s is a well-known, well-liked chain, but like all hospitality businesses carries high overheads and is susceptible to any weakening in retail spending,” said Beattie. “With some locations in the group doing better than others, our first priority will be the preservation of value by identifying and closing the poorer performers, of which we expect there to be several.
“These will be difficult, regrettable but necessary decisions made solely because we don’t believe the group as a whole can trade indefinitely while a buyer is found or some other solution is reached, perhaps via a Deed of Company Arrangement.”
“There is never a good way to deliver this kind of news and we understand the shock, disappointment and trepidation felt by Criniti’s loyal staff,” said administrator Graeme Beattie.
“While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid.”
Eight of the 13 locations remain open, while Chermside (QLD), Manly, Wollongong and Kirrawee (all NSW) and Cannington (WA) have closed.
“There are no plans to re-open the closed stores, nor are there plans to close any open stores, which were the better-performing stores,” administrator Graeme Beattie told 7NEWS.com.au.