Good Group Australia, the company behind the high-end Botswana Butchery chain, has ceased operations, leaving behind a debt of A$23m ($15.2m) and 200 unemployed staff members, News.com.au has reported.
The closure follows the company’s entry into administration in April 2024.
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The Botswana Butchery, known for its premium steaks priced up to A$500, operated in Sydney, Melbourne and Canberra.
Administrators Andrew Sallway and Duncan Clubb of BDO [Binder Dijker Otte – an Australian audit and tax advisory] have now shut down all locations.
News.com.au quoted the administrators: “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.”
A report from the administrators highlighted that the three steakhouses incurred operating losses of A$207,000 in just over a month.
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By GlobalDataThis financial strain led to the closure of the establishments, leaving customers with prepaid vouchers and reservations.
Despite the Australian closures, Good Group Australia’s directors have committed to offering full refunds or vouchers for use at their New Zealand locations. These remain operational and are not involved in the Australian administration proceedings.
The company’s other ventures, including White and Wong’s and Wong Baby, had already stopped trading before the administration.
Creditors were initially advised to liquidate Good Group Australia, but a 45-day extension was granted for decision-making.
The directors have since proposed a deed of company arrangement, which could allow creditors to recoup some of the funds owed.
A recent report to creditors disclosed the company’s significant debt, with the Commonwealth Bank as a major creditor owed A$9.7m through secured facilities.
Other creditors, comprising landlords, suppliers and employees, are owed A$4.5m, with an additional A$9.3m in inter-company loans.
Landlords have outstanding rent totalling A$1.81m, with some expected to recover funds through security bonds.
The Australian Taxation Office is also owed approximately A$3.6m, although this figure is not included in the total debt as the department has not submitted proof of debt claims.
Employees are owed A$523,804 for unpaid annual and long service leave, plus an additional A$92,000 in unpaid superannuation contributions.
