Employees reportedly owed more than $500,000 in unpaid annual, long service leave entitlements
All 200 employees of a fine dining restaurant chain in Australia have been terminated after its three venues were shuttered on Tuesday, according to reports.
The Sydney, Canberra, and Melbourne venues of Botswana Butchery ceased trading on Tuesday due to "adverse trading conditions," according to its website.
"While we are disappointed with this outcome, unfortunately we had exhausted every option," Botswana Butchery said.
The shutdown comes after its operator, hospitality business Good Group Australia, went into administration last month with debts of about $23 million, news.com.au reported.
Significant cash losses incurred
BDO Australia, the administrators handling Good Group, said the group's shareholders funded the trading costs of its Australian operations in a bid to "turn around the group's operations."
"Due to the significant cash losses being incurred in operating the restaurants, the group's shareholders are no longer able to fund the ongoing trading and restructuring costs," BDO Australia said in a statement.
"The group's Directors would like to express their gratitude to the group's dedicated staff for their invaluable contribution to the business."
Staff are currently owed $523,804 from unpaid annual leave and long service leave entitlements, according to news.com.au. They are also owed a further $92,000 from superannuation.
BDO Australia did not mention the debts to employees, but for customers with pre-paid restaurant vouchers or reservations, a full refund will be provided to them.
They may also be converted to Good Group New Zealand vouchers, as its venues in Auckland and Queenstown are unaffected by the shutdown.
"If you enjoyed your experience and want more, we welcome you to visit us at one of our New Zealand venues in Auckland and Queenstown," the company said on its website.
