George Calombaris’ restaurant empire has gone into voluntary administration.
MAdE Establishment Group announced the decision on Monday afternoon, with 12 of Calombaris’ venues to close immediately.
Administrators are set to sell-off most of the celebrity chef’s interests, with up to 500 workers at risk of losing their jobs.
The Melbourne-based restaurant empire, founded by Calombaris, operates 18 venues including the Press Club, Gazi and Hellenic Republic.
The management of MAdE, which is backed by former Swisse CEO Radek Sali, met with creditors earlier on Monday before the announcement was made.
‘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.
George Calombaris’ restaurant empire has gone into voluntary administration
MAdE Establishment Group made the announcement on Monday afternoon, with 12 of Calombaris’ venues to close immediately. Pictured: Hellenic Republic in Brunswick, Melbourne
The Melbourne-based restaurant empire, founded by Calombaris, operates 18 venues including the Press Club, Gazi and Hellenic Republic (pictured)
‘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.
The former MasterChef host on Monday evening said he was ‘devastated’ by the decision.
‘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.’
A first meeting of creditors will be next Thursday.
The announcement comes on the same day Calombaris flagged the sale of his mansion in the exclusive Melbourne suburb of Toorak.
An ‘expressions of interest’ sign was seen outside his house on McMaster Court on Monday.
The home boasts five bedrooms, five bathrooms, a pool, in-home gym and a cinema room.
The announcement comes on the same day the former MasterChef judge flagged the sale of his mansion (pictured) in the exclusive Melbourne suburb of Toorak
The home boasts five bedrooms, five bathrooms, a pool, in-home gym and a cinema room
Calomabaris’ Toorak house will be sold by real estate group Kay and Burton but no official price has been given.
Just weeks earlier on Australia Day, Calombaris and his wife Natalie Tricarico sold their holiday home on the Mornington Peninsula for $1.01million at auction.
Calombaris’ hospitality empire was revealed in July 2019 to have underpaid staff to the tune of $7.8 million.
The wages scandal was uncovered and reported by staff of Mr Sali, who was brought into the business in 2016.
Mr Sali, a member of the Australian Financial Review’s Rich List, previously negotiated the sale of Swisse to a Hong Kong based company for $1.7 billion in one of the largest private business transactions in Australian history.
Calombaris’ hospitality empire was revealed in July 2019 to have underpaid staff to the tune of $7.8 million
The former MasterChef took to Instagram on Monday evening to say he was ‘devastated’ by the decision
Calombaris was a judge and host on the hit Network Ten show MasterChef from 2009 until 2019. Pictured with co-hosts Gary Mehigan and Matt Preston
The $7.8 million in wages and superannuation owed to staff by MAdE Establishment was backpaid in 2019.
The Fair Work Ombudsman also hit the company with a $200,000 fine.
At the time, Calombaris told the ABC’s 7.30 program: ‘We aren’t closing our restaurants, we’re here.
‘And it’s my job as their leader to keep pushing forward and keep speaking this message, not shying away from the mistake we made, but also acknowledging that we fixed it.’
‘I won’t forget that afternoon in 2017 when we sat there with my new business partners after we’d done a full audit for the business and discovered the underpayments.’