Melbourne chef Scott Pickett is confronting a significant financial challenge as debts owed by his restaurant group, Rogue Traders, to a failed superannuation fund have escalated to over $18 million. This situation comes as Pickett prepares to introduce a new financial partner for four of his popular venues, including Matilda 159, Smith St Bistrot, Longrain, and Chancery Lane. The details surrounding these borrowings from the now-collapsed First Guardian superannuation fund have emerged ahead of a pivotal meeting this week, where further information on the prospective backer may be disclosed.
In late September, Pickett appointed administrators to Rogue Traders to facilitate a restructuring process. The business is predominantly owned by First Guardian, which faced collapse in April following an investigation by the Australian Securities and Investments Commission (ASIC). Allegations against First Guardian’s management, led by Pickett’s business partner David Anderson, include improper investments of superannuation funds into various personal projects, including a boutique brewery and multiple fine-dining restaurants.
Initially believed to have borrowed $12 million from First Guardian, it has now been revealed by liquidators that Rogue Traders received approximately $17.63 million between June 2020 and August 2024. This funding was intended for acquiring real estate and expanding Pickett’s restaurant operations. Another venture under Pickett, a catering business, is reported to have borrowed an additional $530,000.
During the pandemic years of 2020 and 2021, while many restaurateurs faced hardships due to COVID-19 restrictions, Pickett was on an acquisition spree. He revitalized the shuttered Longrain and launched Chancery Lane, a bistro characterized by its opulent design. In 2021, he also opened several venues at The Continental Sorrento, including the fine-dining establishment Audrey’s.
According to liquidators, some of the funds obtained by Rogue Traders were allocated to purchase properties, including an apartment in Fitzroy and the venue for Chancery Lane. Currently, both properties are under receivership, following loans amounting to $10 million from the Commonwealth Bank, which preceded the collapse.
Despite the ongoing financial turmoil, Pickett’s restaurants continue to operate successfully. A spokesperson confirmed that the group is actively seeking a new strategic partner, emphasizing the intent to secure the long-term viability of the business. “Our restaurants remain full, all bookings have been fulfilled, and we continue to plan events with our customers,” the spokesperson stated.
Reports indicate that this new partner will primarily serve as a financial backer rather than a co-owner or manager. Their involvement is expected to enhance Rogue Traders’ financial management and support future ventures by Pickett. However, administrators have warned that the funding arrangement being negotiated will not clear the $12 million debt owed to Commonwealth Bank, leaving little for other creditors, including First Guardian.
The financial landscape of Rogue Traders is complex. As of now, the flagship venue, Matilda, reportedly owes $5.6 million, while Chancery Lane owes $5.8 million. Additionally, Smith St Bistrot has outstanding payments of $3.7 million, and Longrain owes $2.1 million. Furthermore, Pickett’s food preparation business carries an additional debt of $1.8 million.
As the situation unfolds, liquidators for First Guardian have cautioned that recoveries from the collapsed superannuation fund will likely be minimal. They noted that another of Pickett’s enterprises, Pickett Commercial, had also appointed liquidators following a statutory demand from First Guardian. The report emphasized a lack of engagement from Pickett Commercial regarding outstanding payments.
The ongoing developments in Scott Pickett’s restaurant empire reflect the challenges many in the hospitality industry face, particularly in the wake of financial mismanagement and the pandemic’s lasting impacts. As the search for a new partner continues, the future of Rogue Traders remains uncertain, but Pickett’s commitment to his customers and staff appears steadfast.
