Luxury lost ... The dining room at Bacchus. Photo: Peter Stoop

One of the grandest fine-dining restaurants in the state has closed its doors.

With an opulent dining room carved out of a heritage-listed playhouse, a line of toques on its wall and a wealthy owner, Newcastle's Bacchus restaurant seemingly had the recipe for success.

Chef Tim Montgomery was blindsided when owner Matthew Higgins, a former business partner of high-profile miner Nathan Tinkler, sat him down last week and said he was closing the restaurant.

Blindsided ... Bacchus chef Tim Montgomery. Photo: Jon Reid

"There is no problem financially. All the accounts are up-to-date, all the guys have been paid. The trend in fine dining hasn't been good lately, but Bacchus is still Newcastle's big night out," Montgomery says. 

Montgomery was due to depart the restaurant later this year, but had set up a succession plan in the kitchen.

"Eventually I want to do my own place in the region. That might be Newcastle, the Hunter or Dungog," he says.

He'll follow the trend for good quality food in more relaxed surrounds.

"I'm really proud of the evolution of food in Newcastle in recent years. I'd call it a renaissance, but it wasn't there in the first place."

Source:  Good Food - 13 August 2013