Melbourne hospitality business collapses leaving behind almost $2million worth of debt

A hospitality enterprise has collapsed leaving behind more than $1.7million worth of debt and almost 250 staff without a job.

Melbourne-based Legacy Hospitality Group Pty Ltd officially entered voluntary administration earlier this month after the it ceased trading in July. 

Liquidators Andrew Knight and Sebastian Hams from advisory and investment firm KordaMentha have been appointed to wind up the business.

The Legacy group is headed by hospitality entrepreneurs Benny Avramides and Tommy McIntosh.

The pair operate multiple venues under the Legacy group banner including catering service Tommy Collins, The Hamptons Bakery, Ladybird Cakes, cafe Rumour Has It, bistro Post Office Club Hotel and restaurant The Villager. 

Legacy group operate multiple establishments including Tommy Collins, The Hamptons Bakery, Ladybird Cakes, Rumour Has It, Post Office Club Hotel and The Villager (stock image)

None of these businesses are affected by the closure of Legacy Hospitality Group.

The enterprise has debts totalling $1.725million, according to a letter that was sent out to creditors last week.

There are 258 creditors, with the Australian Taxation Office (ATO) owed the most from the business at $1.58million.

There are also 241 employees who have lost their job as a result of the business folding.

These workers are owed $170,000 in total for unpaid wages and superannuation.

Owed super amounts range from $11 all the way to $4500. 

More to come