A creditors’ meeting has revealed the financial struggles of Melbourne’s popular restaurant, 1800 Lasagne, which is facing potential closure. Despite its cult following, the establishment has reported a staggering shortfall of nearly $3 million. The financial difficulties stem from a combination of tax debts, cash flow issues, and a substantial loan, which has not been specified.
According to the minutes from the creditors’ meeting held on August 11, 2023, a total of 133 creditors are claiming approximately $3.3 million from 1800 Lasagne. Of this amount, around $277,700 is owed to employees, $186,600 to secured creditors, and more than $2.8 million to unsecured creditors. Additionally, the restaurant owes about $200,000 in superannuation payments to its workforce.
The appointed administrators, Todd Gammel and Matthew Levesque-Hocking from the Sydney-based accountancy firm HLB Mann Judd, are optimistic about finding a buyer for the establishment. Gammel, who chaired the creditors’ meeting, stated that while a decision was expected by Monday, the process may adapt as necessary. He emphasized the importance of the creditors’ position during this administration phase, expressing hope for a successful sale.
Though facing significant challenges, the team at 1800 Lasagne remains committed to keeping the business operational. They recently announced on Instagram that they are hiring chefs, calling for passionate and driven applicants. Gammel noted that the restaurant is still trading, reflecting the staff’s belief in the value of the business.
Minutes from the creditors’ meeting indicated that the restaurant has not turned a profit since its inception. The document cited several reasons for the downfall, including ongoing cash flow constraints, substantial debts to related parties and the Australian Taxation Office, and costs from failed expansion attempts. One of these attempts involved a lease on a premises that never opened, which further strained the financial situation.
Since its launch in August 2020, 1800 Lasagne has garnered acclaim, even earning a chef’s hat in 2023. Notably, renowned chef Jamie Oliver visited the Thornbury venue while filming for the sixteenth season of MasterChef Australia.
In a statement to The Age, founder Joey Kellock reiterated the restaurant’s commitment to its staff and suppliers during this tumultuous time. An Instagram post from August 5 announced the move into voluntary administration, stating, “Our loyal suppliers and our beloved staff are and will continue to be our highest priority through this process.” Kellock emphasized the restaurant’s core values, saying, “1800 Lasagne has always been about people, passion, and plates of love – and that hasn’t changed.”
As the situation evolves, creditors are expected to receive further updates in a report due on Tuesday. The financial challenges faced by 1800 Lasagne serve as a poignant reminder of the pressures within the hospitality industry, particularly following the disruptions caused by the COVID-19 pandemic.
