Italian restaurant chain Criniti’s has entered into voluntary administration, with weak retail spending to blame.
Criniti Group directors appointed Worrells Solvency and Forensic Accountants as administrators at a meeting on Monday, and expect to close low-performing franchises first, according to the Leader.
"Criniti's is a well-known, well-liked chain, but like all hospitality businesses carries high overheads and is susceptible to any weakening in retail spending," Worrells partner Graeme Beattie said.
"With some locations in the group doing better than others, our first priority will be the preservation of value by identifying and closing the poorer performers, of which we expect there to be several."
Staff of The Criniti Group’s 13 restaurants across Sydney, Melbourne, Perth and Brisbane, were notified during meetings yesterday morning.
Beattie said staff were shocked and disappointed.
"These will be difficult, regrettable but necessary decisions made solely because we don't believe the group as a whole can trade indefinitely while a buyer is found or some other solution is reached,” Beattie said.
The administrators had not yet concluded whether gift cards for the restaurants would still be honoured.
More to come.
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