Two top Melbourne restaurants suddenly collapse blaming cost of living crisis and Covid lockdowns – as owner makes emotional post: ‘Enough is enough’
- Calia Australia has gone into administration
- Calia operates eateries at Emporium and Chadstone
- Co-owner Jason Chang blamed soaring operational costs
- Victoria’s Covid lockdown also to blame
Two popular restaurants in prime Melbourne locations have been forced into administration over Victoria’s cost of living crisis and repeated lockdowns.
Calia Australia, which operates eateries at Emporium and Chadstone, as well as a speciality food and drinks business, has placed itself in voluntary administration.
City of Melbourne councillor Jason Chang, who co-owns the restaurants with businessman Ricky Thien, informed customers in an emotional social media post.
‘I am going to post a raw and honest post that is straight from the heart but I believe I need to share it so others know it is ok to go through what I am going through,’ he wrote on LinkedIn.
Calia Australia, which operates eateries at Emporium and Chadstone, has placed itself in voluntary administration. Melbourne councillor Jason Chang (pictured with wife Clara), who co-owns the restaurants with businessman Ricky Thien, told customers in an emotional post
Calia Australia opened its first restaurant in 2016 o much fanfare after revealing an Asian-inspired menu created by Michelin Star chef Francisco Javier Araya
‘Mental health has always had a social stigma, especially in Asian culture, but it really shouldn’t be.
‘I recently broke down in City Council when I commented on the challenges of small businesses in Melbourne CBD as well as families during this cost of living crisis.
‘I have now realised that as strong as I try to be, I am not immune from depression and anxiety.’
Mr Chang addressed the huge emotional toll the past few years have had on him, particularly the difficulties of running a business during Covid.
Melburnians suffered the longest period of Covid-19 lockdown in the world.
‘I tried to be strong for the community and my team but it has taken a huge toll on my mental health and family,’ Mr Chang wrote.
‘In the end I am human, we are all human. Like many other struggling small business owners in Melbourne, my own hospitality businesses have been faced with many financial challenges with the rise of operational costs (wages, COGS [cost of goods sold], rent, borrowing costs, etc).
‘As I broke down, I realised that I needed help to carry the emotional stress I faced. It was a humbling experience to acknowledge I could no longer do this alone. I reached out for help to my wife, family, closest friends and a doctor and it was one of the best decisions I ever made.’
Glenn Crisp of insolvency firm Jirsch Sutherland has been appointed administrator for Calia Australia, and is working to strike a deal with the parties owed money.
The company called in insolvency experts on June 28. Glenn Crisp of Jirsch Sutherland has been appointed administrator, and is working to strike a deal with the parties owed money
The company called in insolvency experts on June 28, according to the Herald Sun.
In a statement, Mr Chang said his restaurants remained open but were financially affected by soaring operational costs and Covid lockdowns.
‘Similar to many small hospitality businesses in Melbourne, the past few years have brought significant challenges to our company due to the impacts of Covid,’ he said.
‘Calia is working closely with Jirsch Sutherland to actively explore solutions as it relates to both customers and key stakeholders.
‘Calia venues are currently operating as normal, and are fully committed to providing regular updates to all stakeholders as it works through the voluntary administration process.’
The restaurants had opened to much fanfare after revealing an Asian-inspired menu created by Michelin Star chef Francisco Javier Araya.
Calia Australia opened its first restaurant in 2016.
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