A popular Sydney restaurant chain has entered administration, putting about 180 jobs at risk.
Five separate restaurants, all of which fall under the management of Elements Dining Group, have entered voluntary administration, according to the Australian Securities and Investments Commission (ASIC).
This includes Elements Bar and Grill restaurants at five locations in Pyrmont, Wooloomooloo, Darlinghurst, Haberfield and Walsh Bay.
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John McInerney and Phillip Campbell-Wilson of Grant Thornton have been appointed as voluntary administrators for the five popular restaurants.
“The object of the Voluntary Administration is to attempt to preserve the value of the business and to provide the owners with an opportunity to consider a formal restructuring plan,” McInerney said.
“The shared head office will continue to trade during the Voluntary Administration period.”
McInerney said the workforce is made up of approximately 180 employees, encompassing full-time, part-time, and casual staff, all of whom will remain employed for now.
“A preliminary review of the Companies’ financial position by the Administrators suggests the primary creditors are likely to be the tax office and related entities, although this is subject to further detailed investigation.”
In December last year, Japanese restaurant chain Okami put 16 of its venues across Australia into voluntary administration, with the founder blaming COVID-19 costs and rising inflation.
Earlier in the month, a popular Sydney pizza chain, Bondi Pizza, entered administration, leaving 120 concerned staff in limbo.
Trading restrictions during the COVID-19 pandemic were also blamed for the financial position, along with a significant increase in operating costs.