UPDATE: Melbourne’s acclaimed chef Scott Pickett faces a significant crisis as his restaurant group has accumulated a staggering $27.2 million in debt, leading to the administration of three associated companies. This urgent development comes just weeks after Pickett struggled to meet debt repayments to the Commonwealth Bank.
The troubled Rogue Traders Group, which operates popular venues including Matilda 159, Smith St Bistrot, Longrain, and Chancery Lane, has been under financial strain since at least 2022, as it failed to maintain proper accounting practices. In late September, Pickett appointed administrators from Romanis Cant to manage the fallout from the financial debacle.
Concerns have escalated as reports indicate that Rogue Traders may have been trading while insolvent for an entire year before entering administration. The company halted repayments to the Commonwealth Bank, which has security over all of Rogue Traders’ assets and a personal guarantee from Pickett himself. The bank is expected to recover the full $12.8 million it lent to the group.
The situation is further complicated by the involvement of the First Guardian superannuation fund, which also faces scrutiny from the corporate watchdog and is owed $14 million. At the time of the administration, Matilda 159 owed Rogue Traders $5.6 million, while Chancery Lane had a debt of $5.8 million.
Despite the financial turmoil, all four restaurants remain operational as the business engages with a potential investor for a restructuring plan aimed at infusing capital into the struggling enterprise. This move is crucial for sustaining jobs and supporting the local dining scene, which has already faced significant challenges in recent years.
As the situation develops, stakeholders and patrons alike are watching closely. The outcome of this restructuring effort could determine the future of Pickett’s esteemed dining establishments and the livelihoods of those who work within them.
Stay tuned for ongoing updates as this story unfolds and more details emerge regarding the restructuring efforts and the fate of Scott Pickett’s restaurant empire.
