Administators of George Calombaris’ restaurant empire in huge booze fire sale

The administrators of George Calombaris’ former restaurant empire have been forced into a booze fire sale to pay back some of the $22 million owed to creditors. 

The former MasterChef judge’s MAdE Establishments business spectacularly folded in February with just $389 in the bank and owing staff $1.2million in wages and entitlements. 

Documents this week revealed that liquidator Korda Mentha put almost 8,000 bottles of alcohol from six of the company’s restaurants up for auction online in a bid to pay down part of the huge debt.

Products auctioned off included one of the world’s most expensive French wines – a $20,000 bottle of Chateau Mouton Rothschild from the year 2000 – plus a 10-year-old Dom Perignon champagne and right down to $2 bottles of Peroni beer. 

Administrators of George Calombaris’s MAdE Establishments restaurant empire have auctioned off as many as 8000 bottles of alcohol from six bars to pay back creditors. Above is the former MasterChef star with his wife Natalie Tricario

The booze bottles were sourced from the liquor cabinets and bars of six of Calombaris' former restaurants, including Melbourne's Gazi restaurant (above)

The booze bottles were sourced from the liquor cabinets and bars of six of Calombaris’ former restaurants, including Melbourne’s Gazi restaurant (above)

‘EVERYTHING MUST BE SOLD!’ an ad by the Hymans Auction House said.  

And most of it went out the door in late April and early May – with just a ‘small amount’ of alcohol and other inventory left over according to an administrator’s report obtained on Monday.

A separate fire sale was held for restaurant equipment from four MAdE venues, ranging from whole bars to stoves and MasterChef-style ice cream mixers.  

The two sales netted the administrators about $333,000, according to the financial report. 

The result was revealed in financial documents just as an up-market Melbourne yoghurt chain backed by Calombaris, Yo-Chi, was dragged into a fresh debt scandal. 

Kitchen equipment (above) was also sold off at a separate auction in May

Kitchen equipment (above) was also sold off at a separate auction in May

A printer that was one of dozens of pieces of backroom equipment to be sold off at auction in May

A printer that was one of dozens of pieces of backroom equipment to be sold off at auction in May

Yo-Chi’s three outlets were the sole venues under the MAdE umbrella to trade as usual after the company went into voluntary administration. 

On Saturday the Herald Sun revealed liquidators had given up trying to claw back an $140,000 inter-company loan from the yoghurt business.  

‘The liquidators concluded that it would not be commercial to pursue the outstanding loan balance further as Yo-Chi has minimal cash and recoverable assets,’ said financial documents seen by Daily Mail Australia.

‘In addition, Made Establishment’s claim is as an unsecured creditor of Yo-Chi and we are aware of a secured creditor who would rank ahead of Made Establishment’s claim in any formal insolvency process.’ 

Yo-Chi, an upmarket Melbourne yoghurt chain, was the sole MAdE franchise to continue operating. Liquidators have given up trying to claw back a $140,000 intra-company loan

Yo-Chi, an upmarket Melbourne yoghurt chain, was the sole MAdE franchise to continue operating. Liquidators have given up trying to claw back a $140,000 intra-company loan

Calombaris has not commented on the latest developments. 

The once-thriving Melbourne-based restaurant empire he founded previously operated 18 venues including the Press Club, Gazi and Hellenic Republic. 

But its fortunes changed in July 2019 when it emerged it had underpaid staff to the tune of $7.8 million.

The wages were later backpaid but the development devastated the company’s reputation and Calombaris’ company was hit with a $200,000 fine.  

The Melbourne-based restaurant empire, founded by Calombaris, once operated 18 venues including the Press Club, Gazi and Hellenic Republic (pictured)

The Melbourne-based restaurant empire, founded by Calombaris, once operated 18 venues including the Press Club, Gazi and Hellenic Republic (pictured)

Financial documents said MAdE owes $9 million to the Commonwealth Bank alone, with most of that unlikely to be repaid. The liquidators have so far raised $820,000 which is expected to be directed to the bank, which is the main secured creditor. 

Staff are still owed $1.32 million in wages and entitlements which will be picked up by the taxpayer.

When the empire went into administration on February 10, Calombaris said he was ‘devastated’. 

 ‘It is with deep sadness and regret that today MAdE Establishment has been placed into voluntary administration,’ he wrote on social media.

‘To all my team, I truly regret it has come to this. On a personal note, the last few months have been the most challenging I have ever faced.

‘At this time, while personally devastated, I remain thankful to my family, friends, the MAdE team, our loyal and regular customers.

‘I am so sorry all our collective efforts have not provided to be enough. I’m gutted that it’s come to this.’   

Calombaris (pictured, centre) was a judge and host on MasterChef from 2009 until 2019. The trio have this year been replaced by Melissa Leong, Jock Zonfrillo and Andy Allan

Calombaris (pictured, centre) was a judge and host on MasterChef from 2009 until 2019. The trio have this year been replaced by Melissa Leong, Jock Zonfrillo and Andy Allan

KordaMentha announced it had been appointed voluntary administrators earlier this year. 

‘Craig Shepard and Leanne Chesser of KordaMentha restructuring were today appointed Voluntary Administrators of 22 companies in the MAdE Establishment Group,’ the advisory and investment firm said in a statement.

‘The appointment excludes the [smaller offshoot, yoghurt store] Yo-Chi operations which will continue to trade as usual. All other venues have stopped trading immediately.

‘Employees have been paid all outstanding wages and superannuation up to the date of the appointment.’

Read more at DailyMail.co.uk