Melbourne restaurants collapse amid debt and watchdog probe
Two Melbourne restaurants that are both former recipients of Australian Good Food Guide Chef's Hats, have abruptly ceased operations and entered liquidation, leaving behind a trail of over $1.3 million in debts.
The Richmond-based Asian fusion eateries, Kekou and Klae, were managed by David Anderson, whose aspirations to build a hospitality empire are now overshadowed by a corporate watchdog investigation.
Liquidators were appointed on Thursday last week, with the debt including over $50,000 in unredeemed gift vouchers held by patrons.
The downfall of the restaurants coincides with an ongoing investigation by the Australian Securities and Investments Commission (ASIC) into Anderson and his recently collapsed financial entity, Falcon Capital. Until last month, Falcon Capital oversaw investment funds entrusted with the superannuation savings of over 6,000 Australians. ASIC alleges serious misconduct, claiming that Anderson "improperly funnelled money from the fund into his own personal ventures," which reportedly included his ambitions in the hospitality sector and various property developments.
Financial documents reveal the extent of the restaurants' liabilities, with over $1.3 million owed to 82 creditors. Among the significant debts is nearly $400,000 owed to the Australian Tax Office. Employees have also been heavily impacted, with more than $220,000 owed to 12 staff members, encompassing "$33,885 in superannuation, $49,125 in holiday pay and $98,157 in retrenchment," according to director Anderson's reports. Adding to the financial distress, a substantial "$43,956 worth of unused gift vouchers was listed for Kekou and $7732 for Klae," leaving numerous customers with worthless credits.
Key creditors facing significant losses include retail banking giant Tyro, owed $335,433, spirits wholesaler Paramount Liquor ($8784), fruit and vegetable supplier Fresh Produce Purveyor ($24,207), wine wholesaler Nelson Wine Co. ($6777), and food distributor Campania Olive Oil Co. ($11,321).
Further complicating the financial picture, other creditors of Klae and Kekou, situated on Swan Street and Bridge Road respectively, include real estate agency CVA Property Consultants ($37,339), energy broker Termina ($15,183), food supplier Tangola ($4569), and company Nolax ($143,992).
The directors’ reports submitted to liquidator Adrian Warry of Dye & Co. also expose "a complex web of loans to related parties," revealing that Kekou is owed more than $65,000 by Klae. Brewer Fox Friday, which reportedly received substantial funding from Falcon Capital, is also listed as a creditor owed over $25,000. Notably, Fox Friday itself entered administration last month, along with its subsidiary, the Thornbury bar and bottle shop Carwyn Cellars.
The only assets listed for both restaurant venues by Anderson are the fit-out and office equipment, totalling $26,100. This liquidation follows earlier reports that Kekou’s landlord, Sara Management Services, had repossessed the premises due to alleged "non-payment of rent," leaving some customers who had paid deposits significantly out of pocket.
Jonathan Jackson, 12th May 2025
