Job losses expected as Italian restaurant chain Criniti's goes under
Italian restaurant chain Criniti's has gone into voluntary administration blaming an environment of weak consumer spending and high overheads.
Worrells Solvency and Forensic Accountants have been appointed as administrators for the group which operates 13 venues in Sydney, Melbourne, Perth and Brisbane.
It is believed some stores will remain open but weaker performing venues will be closed quickly.
"Criniti's is a well-known, well-liked chain, but like all hospitality businesses carries high overheads and is susceptible to any weakening in retail spending," registered liquidator Graeme Beattie told 9news.com.au.
"With some locations in the group doing better than others, our first priority will be the preservation of value by identifying and closing the poorer performers, of which we expect there to be several.”
Beattie said that there will be job losses involved, describing the decision to close some stores as “difficult, regrettable but necessary”.
"There is never a good way to deliver this kind of news and we understand the shock, disappointment and trepidation felt by Criniti's loyal staff," Beattie told 9news.com.au.
"While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid."
Sheridan Randall, 20th November 2019
