Sydney Chinese restaurant Phoenix has been placed in voluntary administration after plummeting sales.
The famed yum cha venue was the largest restaurant in Phoenix Restaurant Group’s portfolio and was in operation for approximately four years.
The group has also placed another venue in voluntary administration, Mister Dee’s Kitchen in Darlinghurst.
Insolvency firm Worrells has been appointed as voluntary administrator, with representative Christopher Darin confirming the firm has commenced gathering records.
Worrells will determine a reason for the collapse, but Darin says Coronavirus could be to blame.
“The director has indicated in initial discussions that one of the factors in the fall in turnover of the restaurants is a reaction to the Coronavirus,” Darin told News.com.au.
Phoenix Restaurant Group operates a number of eateries in Sydney and Brisbane, but so far the Phoenix Parramatta location is the only affected venue. All other locations will continue to trade as normal.
The collapse comes off the back of a number of eateries temporarily closing their doors or shutting down for good as diners continue to avoid eating out.
Shark Fin House on Bourke Street in Melbourne was forced to call it a day after 31 years in business and popular Chatswood eatery Star Capital Restaurant has been closed for weeks, but will reopen for the first time on 5 March.
“We will resume business operations on Thursday. Please come try try our yum cha lunch and live seafood on special price [on] the a la carte menu,” reads a sign posted in the window.
As the hospitality industry continues to struggle with consumer anxieties around Coronavirus, it’s a timely reminder to support local business.
Prime Minister Scott Morrison says the government is committed to ensuring Australian businesses keep their doors open.
“We’ll be focusing on ensuring that we keep Australians in jobs, we keep business in business and we keep investment flowing during what will be a very challenging time for the Australian economy.”
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