Yahoo Finance 120 jobs at risk as Australian pizza chain goes into administration: 'Historic difficulties'
Administrators are hoping to save the 'core business' of Bondi Pizza before it's too late.
More than 120 Australian jobs are in limbo after a Sydney pizza chain announced it was going into administration.
Bondi Pizza has revealed three of its restaurants, located in Macquarie Park, Parramatta and Eastgardens, have been badly hit by economic conditions that kicked off during the COVID pandemic.
The only location that hasn’t been included in the administration proceedings is the newly opened Randwick restaurant.
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BRI Ferrier's Jonathon Keenan and Peter Krejci have been appointed as the administrators and the first meeting of creditors has been scheduled for March 11.
Keenan said the company has been dealing with “historic difficulties” over the last few years.
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"We are currently trading the business and offering the business for sale while we explore options to restructure its affairs and provide opportunities for its staff to continue with the group," he said.
“But we’re working closely with directors and managers, looking for a positive solution for the business.”
Casual Dining Concepts (Holdings) Pty Ltd owns Bondi Pizza and it, along with Casual Dining Concepts (Leasing) Pty Ltd, Casual Dining Concepts (Stores) Pty Ltd, and Casual Dining Concepts (Trading) Pty Ltd, are a part of the administration proceedings.
The administrators are reportedly looking at all options to save the companies and the 120 workers impacted by the proceedings, but the debts are “substantial”. They are hoping to “resolve those historical finance issues” and “preserve a core viable business”.
Bondi Pizza says it has been battling a 'perfect storm' of issues
The company has released a statement to customers explaining the situation.
"After a tough period for the hospitality industry throughout COVID, like many other restaurants, we have been hit with the perfect storm of higher operating costs, the impact of increases in interest rates and the weight of cost of living pressures experienced by the wider community," it said on social media.
"As a result, after serving Sydney for over 14 years, Bondi Pizza has entered voluntary administration. Over the next few weeks, we will seek to restructure the company with the aim to get it back on the right footing that will enable us to preserve over 120 jobs and continue to serve you, our valued customers.
"Our doors remain open and we hope to serve as many customers over the next few weeks as possible. We would very much appreciate your support during this period and thank you for your patronage through the years!"
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