Yahoo Finance 180 jobs at risk as popular restaurant chain goes into administration
The group’s five restaurants will continue to trade during the voluntary administration period.
Around 180 Australian jobs are at risk as a popular Sydney restaurant chain goes into administration.
Elements Dining Group manages four Elements Bar & Grill restaurants in Sydney’s Pyrmont, Wooloomooloo, Darlinghurst and Haberfield, along with Elements Seafood Grillhouse in Walsh Bay.
All five of the popular restaurants have gone into voluntary administration, with John McInerney and Phillip Campbell-Wilson of Grant Thornton appointed as voluntary administrators.
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McInerney said the administrators would attempt to preserve the value of the business and to provide the owners with an opportunity to consider a formal restructuring plan.
“The restaurants and shared head office will continue to trade during the voluntary administration period,” McInerney said in the statement to Yahoo Finance.
“The workforce is made up of approximately 180 employees, encompassing full-time, part-time, and casual staff who continue to be employed.”
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He added that a preliminary review of the company’s financial position suggested the primary creditors were likely to be the tax office and related entities, “although this is subject to further detailed investigation”.
Elements Bar & Grill was established in 2018, while Elements Seafood Grillhouse opened in 2023.
The chain has been rated among the top restaurants in the state, with the Pyrmont location awarded Best New Restaurant NSW at the Restaurant and Catering Celebrating Industry Night 2022. Steaks at the restaurant sell for as much as $269.
It comes after popular Sydney pizza chain Bondi Pizza announced it was going into administration.
It revealed three of its restaurants in Macquarie Park, Parramatta and Eastgardens were badly hit by economic conditions that started during the pandemic. Its newly opened Randwick store is not included in the proceedings.
According to CreditorWatch, the rate of external administrations is well above pre-pandemic levels. The food and beverage services sector still has the highest rate of external administrations.
It expects the sector will continue to suffer as Aussies pull back on their spending at restaurants and on takeaway, thanks to cost-of-living pressures. The sector has the highest probability of business failure over the next 12 months by 7.08 per cent.
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