A hospitality enterprise has collapsed leaving behind more than $1.7million worth of debt and almost 250 staff without a job.
Melbourne-based Legacy Hospitality Group Pty Ltd officially entered voluntary administration earlier this month after it ceased trading back in July.
Liquidators Andrew Knight and Sebastian Hams from advisory and investment firm KordaMentha have been appointed to wind up the business.
The Legacy group is headed by hospitality entrepreneurs Benny Avramides and Tommy McIntosh.
The pair operate multiple venues under the Legacy group banner including catering service Tommy Collins, The Hamptons Bakery, Ladybird Cakes, cafe Rumour Has It, bistro Post Office Club Hotel and restaurant The Villager.
Hospitality business Legacy Hospitality Group went into voluntary administration earlier this month (stock image)
None of these businesses are affected by the closure of Legacy Hospitality Group.
The enterprise has debts totalling $1.725million, according to a letter that was sent out to creditors last week.
There are 258 creditors, with the Australian Taxation Office (ATO) owed the most at $1.58million.
The Australian Securities and Investments Commission (ASIC), the State Revenue Office and the Fair Entitlements Guarantee scheme are also owed money.
There are 241 employees who have lost their job as a result of Legacy Hospitality Group folding.
Legacy group operate multiple establishments including Tommy Collins, The Hamptons Bakery, Ladybird Cakes, Rumour Has It, Post Office Club Hotel and The Villager (stock image)
These workers are owed $170,000 in total for unpaid wages and superannuation. Owed super amounts range from $11 all the way to $4500.
‘It’s a really tough time for our industry and we’re working through this with the team at KordaMentha to remain compliant and ensure our staff are looked after and paid their entitlements,’ Mr Avramides told news.com.au.
Legacy Hospitality Group is estimated to have about $99,000 worth of assets.