Criniti's goes into administration
The group currently operates 13 venues in Sydney, Melbourne, Perth and Brisbane.
Criniti’s has gone into administration, with high overheads and ‘weakening’ in consumer spending affecting the Italian restaurant chain’s sales.
The directors of Criniti Restaurant Group appointed Worrells Solvency and Forensic Accountants as administrators.
First established in Sydney’s Parramatta in 2003, Criniti’s comprises 40 companies involved in the operation of 13 venues at locations in Sydney, Melbourne, Perth and Brisbane.
“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. 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,” registered liquidator Graeme Beattie said.
“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, perhaps via a Deed of Company Arrangement.”
Employees were informed of the decision to wind-up the companies at staff meetings held on premises.
“There is never a good way to deliver this kind of news and we understand the shock, disappointment and trepidation felt by Criniti’s loyal staff, Beattie added.
“While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid.”
