Popular Italian restaurant chain Criniti’s has reportedly gone into administration with “several” of their stores expected to shut down permanently.
On Tuesday night, some of Criniti’s 13 restaurants in Sydney, Melbourne, Perth and Brisbane, were ‘temporarily’ closed with staff expecting to re-open for lunch on Wednesday. It was only then that staff were given the bad news.
Graeme Beattie of Worrells Solvency and Forensic Accountants has blamed the slugging economy and low consumer spending on the downfall of 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.”
He added, “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.”
This will ultimately mean a significant loss in staff members.
“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 says.
“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.”
Customers with gift certificates will be contacted shortly.