Popular Italian eatery Criniti goes into administration
Italian restaurant chain Criniti’s has gone into administration amid tough economic conditions.
Some of the chain’s 13 restaurants in Sydney, Melbourne, Perth, and Brisbane will be closed forever.
Administrators say they expect ‘several’ to shut down but are yet to decide which or how many.
The chain’s nine restaurants in New South Wales are managed by Frank Criniti and his wife Rima.
On Tuesday night some were temporarily closed before staff was given the bad news.
Most of them were expected to re-open for lunch on Wednesday.
The Directors of Criniti Restaurant Group, which comprises 40 companies involved in operating the restaurants, appointed Worrells Solvency and Forensic Accountants.
Administrator Graeme Beattie said the sluggish economy and low consumer spending has crippled the chain.
‘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,’ he 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.’
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’.
Referring to the staff who will lose their jobs, he said: ‘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.’
‘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’.
He said customers with gift certificates will be contacted soon.
Source: Thanks msn.com