An upscale steakhouse chain has gone bankrupt with $23 million in debt, leaving 200 people unemployed, blamed on “unfavorable trading conditions”.
The restaurants’ parent company, Good Group Australia, went into voluntary administration on March 31 and appointed BDO as their administrator for their upscale steak and Asian restaurants.
White and Wong’s ceased operations at their Martin Place restaurant in Sydney and one in Melbourne’s Chadstone, as well as Wong Baby on Melbourne’s Chapel Street, in April – while the steakhouses remained open.
BDO administrators Andrew Sallway and Duncan Clubb closed the three Botswana Butchery restaurants on Tuesday, with restaurant managers saying they were ‘disappointed’.
“It is with great regret that we have made the unfortunate but necessary decision to close our Botswana Butchery businesses in Sydney, Melbourne and Canberra,” they said.
The more expensive steak restaurants continued to operate after their parent company went into voluntary administration on March 31. The restaurant had branches in Sydney, Melbourne and Canberra.
Botswana Butchery had an extensive meat selection and charged $390 for a 1.6kg Wagyu Tomahawk steak. The restaurant also catered to non-meat eaters and had lobster and seafood on the menu
‘All effective from Tuesday, May 14, 2024, due to adverse trading conditions.
“While we are disappointed with this outcome, we had unfortunately exhausted all options.”
The restaurant chain first found success in New Zealand before expanding to Sydney and Melbourne in 2022.
Good Group’s operations in New Zealand were not affected by the voluntary administration.
The Sydney Botswana Butchery in Sydney accommodated 300 guests across three floors and had room for more than 900 standing.
Botswana Butchery’s Sydney’s Martin Place restaurant. Managers at the chain posted on social media that they were ‘disappointed’ and blamed ‘unfavorable trading conditions’
At the time of the voluntary administration, the upscale chain had a 4-pound Wagyu Tomahawk steak for $390, and the restaurant’s website said it served caviar, as well as gold-dusted meats and desserts.
Although the menu had an extensive meat selection, guests could still order lobster and other seafood.
That’s what BDO administrators said news.com.au they discovered that the business was no longer viable as the restaurants continued to lose money.
“Due to the significant cash losses incurred in operating the restaurants, the group’s shareholders are no longer able to finance ongoing trading and restructuring costs,” they said.
Continuing to operate the three restaurants led to an operating loss of $207,000 in just over a month, administrators found in an earlier report.
Customers who have vouchers or made prepaid reservations will receive a refund.
Good Group Australia directors have advised that customers will not be left penniless and will receive a full refund or voucher to dine at the company’s New Zealand restaurants – which remain open and unaffected.