Popular restaurant in western Sydney collapses just two years after opening

A popular restaurant and wedding venue in Sydney’s west has collapsed under “incredibly difficult” market conditions.

Billed as ‘Western Sydney’s most memorable venue’, The Orchard consists of a restaurant, café and garden bar in Penrith, approximately 60km from the city’s CBD.

Owners thanked the community for its continued support as they announced the shock closure in a social media post on Wednesday.

“We are grateful for the continued support of the Penrith community and hope to continue to be a venue to celebrate your special occasions for many years to come,” The Orchard said in a statement.

‘It’s very much business as usual. Rest assured we will keep everyone informed as we go through this process.”

Administrator Graeme Beattie of insolvency firm Worrells described The Orchard as ‘one of Western Sydney’s finest hospitality venues’.

“This decision comes after a period of challenging market conditions, including rising operating costs, changing consumer behavior and reduced discretionary spending, all of which have contributed to an unsustainable financial position,” he said.

Mr Beattie said he was carrying out an “urgent financial analysis” of the company.

“With the administration still in its infancy, I intend to continue to conduct the company’s affairs on a ‘business as usual’ basis,” he said.

Fedlallah Hallani, director of FRM Café Pty Ltd, which trades as The Orchard Penrith, said it had been “an incredibly difficult process”.

“During the government we will work closely with Mr Beattie and the Worrells team to ensure the best possible outcome for all stakeholders,” he said.

“While this is a challenging time, we remain committed to exploring all options to secure the future of the company.

“We appreciate and appreciate the continued support throughout this process.”

A number of well-known sites have collapsed across Australia in recent months.

The Carlton Club on Bourke Street in Melbourne’s CBD and the Windsor Castle Hotel on Albert Street both entered voluntary management in November.

The venues owe about $1.5 million to creditors, including the Australian Taxation Office.

On Monday the Orchard appointed an administrator, Graeme Beattie from Worrells, in a bid to stay afloat

Owner Tracey Lester “the last few years have been incredibly challenging as we navigate the ongoing impacts of the Covid-19 pandemic,” said in a statement this week.

‘We are at the end of a restructuring process and I continue to work closely with my advisors and legal team to achieve the best possible outcomes for my team, for these much-loved, iconic Melbourne venues, and a win for the hospitality industry, proof that this vibrant city continues to thrive.’