Melbourne hospitality business collapses leaving behind almost $2million worth of debt
- The Melbourne-based hospitality company is collapsing
- The business community owed more than $1.7 million to creditors
A catering company has gone bankrupt, leaving behind more than $1.7 million in debt and nearly 250 employees without jobs.
Melbourne-based Legacy Hospitality Group Pty Ltd officially entered voluntary administration earlier this month after ceasing operations in July.
Liquidators Andrew Knight and Sebastian Hams of consultancy and investment company KordaMentha have been appointed to liquidate the company.
The Legacy group is led by catering entrepreneurs Benny Avramides and Tommy McIntosh.
Hospitality company Legacy Hospitality Group went into voluntary management earlier this month (stock image)
The pair operate multiple locations under the Legacy group banner, including catering service Tommy Collins, The Hamptons Bakery, Ladybird Cakes, café Rumor Has It, bistro Post Office Club Hotel and restaurant The Villager.
None of these businesses are affected by the closure of Legacy Hospitality Group.
The company has debts totaling $1.725 million, according to a letter sent to creditors last week.
There are 258 creditors, with the Australian Taxation Office (ATO) having the most debt to the company at $1.58 million.
In addition, 241 employees have lost their jobs due to the company folding.
These employees are owed a total of $170,000 for unpaid wages and pensions.
Super amounts owed range from $11 to $4,500.
More to come