Following its administration, Good Group Australia has officially closed down all three of its Botswana Butchery restaurants. The move has terminated the employment of over 200 staff.
In its prime, the Botswana Butchery chain sold steak for as much as $500 a piece, with restaurants located in Sydney, Melbourne and Canberra. The company's appointed administrators, Andrew Sallway and Duncan Clubb of BDO Australia, officially pulled the plug on Tuesday, 14th of May.
In a statement, Sallway and Clubb noted that the group's shareholders were no longer able to fund the ongoing trading and restructuring costs due to the significant cash losses being incurred in operating the restaurants.
The administrators had already reported that by continuing to operate, the three steak houses had accumulated operating losses of $207,000 in a single month. Good Group Australia's directors confirmed that any customer with prepaid vouchers or prepaid reservations would be provided with a voucher to any of the group's New Zealand restaurants, which remain unaffected by the Australian proceedings.
Good Group Australia's other flagship brand, White and Wong's, has already ceased trading at both its locations.
The company has received a 45-day delay to make a decision despite a recommendation from administrators to be placed into liquidation. Directors have now proposed a deed of company arrangement, which may result in a return on some of the money owed to them.
A report to creditors found the group was over AUD 23 million in debt, with AUD 9.7 million owed to the Commonwealth Bank. A further AUD 4.5 million was owed to creditors, including landlords, with AUD 9.3 owed in inter-company loans. Administrators have not included AUD 3.6 million owed in tax, as the tax department has not yet lodged any proof of debt claims.
Staff are owed AUD 523,804 from unpaid annual leave and long-service leave entitlements. A further AUD 92,000 is also owed in unpaid superannuation.
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