George Calombaris' restaurant empire is on the brink of COLLAPSE with 500 workers at risk of losing their jobs - just months after he vowed 'we're not closing' amid $7.8m wage underpayment scandal
- George Calombaris' restaurant empire could go into voluntary administration
- Melbourne based Made Establishment is set to meet with creditors on Monday
- The business empire was rocked by a $7.8million worker underpayment scandal
- The company has backpaid the wages and superannuation underpayments
Celebrity chef George Calombaris' restaurant empire is reportedly on the brink of collapse seven months after an underpayment scandal rocked his company.
A voluntary administrator could be appointed this week for Calombaris' Made Establishment business - with up to 500 jobs and 18 restaurants on the chopping block.
The management of Made Establishment, which is backed by former Swisse CEO Radek Sali, will meet with creditors on Monday, reports The Herald Sun.
Celebrity chef George Calombaris' restaurant empire is reportedly on the brink of collapse seven months after an underpayment scandal rocked his company
Hellenic Republic Brunswick, a former flagship of Made Establishment, was transformed into vegan friendly eatery Crofter
Made Establishment is headquartered in Mount Waverley in southeast Melbourne
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'There are so many options on the table,' a source close to the company told the publication, adding it was too early to tell if the restaurants would be forced to close.
Some employees were reportedly informed of the meeting in advance.
The Melbourne based restaurant empire includes the Press Club, Gazi and Hellenic Republic.
It is understood the options include selling some of the poorly performing restaurants and the deal would see creditors and staff paid in full.
Calombaris' hospitality empire was revealed in July 2019 to have underpaid staff to the tune of $7.8 million.
The wages scandal was uncovered and reported by staff of Mr Sali, who was brought into the business in 2016.
Mr Sali, a member of the Australian Financial Review's Rich List, previously negotiated the sale of Swisse to a Hong Kong based company for $1.7 billion in one of the largest private business transactions in Australian history.
The $7.8 million in wages and superannuation owed to staff by Made Establishment was backpaid in 2019.
The Fair Work Ombudsman also hit the company with a $200,000 fine.
At the time, Calombaris told the ABC's 7.30 program: 'We aren't closing our restaurants, we're here.
'And it's my job as their leader to keep pushing forward and keep speaking this message, not shying away from the mistake we made, but also acknowledging that we fixed it.'
'I won't forget that afternoon in 2017 when we sat there with my new business partners after we'd done a full audit for the business and discovered the underpayments.'
Calombaris' hospitality empire was revealed in July 2019 to have underpaid staff to the tune of $7.8 million
The celebrity chef begged the public to return to his restaurants after the bombshell underpayment revelations.
The 41-year-old said he was too busy 'being creative' to realise his blunder in the interview with Leigh Sales.
Daily Mail Australia previously reported in 2019 how the chef's restaurants were suffering with some diners refusing to go there after the wage scandal.
The former Masterchef judge announced his decision to close his Melbourne restaurant Hellenic Republic after being caught underpaying staff millions.
'On December 31, 2019 we are farewelling Hellenic Republic Brunswick and transforming our beloved space into 'Crofter' with our new partner,' he wrote on Instagram.
The restaurant will now be led by British chef Matt Wilkinson, who is transforming the once traditional Greek restaurant into a modern dining room focused on vegetarian-friendly fare.
The chef, who earned a seven-figure salary on the Network 10 cooking show, has handed over four of his popular restaurants in the last six months of 2019.
Hellenic Republic Kew was rebranded to Vita Ristorante, an Italian eatery
The Press Club was closed in July after a successful 12-year stint and has since re-opened as Elektra under chef Reuben Davis
Closing without fanfare, his once-proud Greek empire has since been turned into trendy Italian, Argentinian and European restaurants - all notably without Calombaris at the helm.
Despite removing his name from the restaurants, which are led by new star chefs, they are still owned by his multi-million dollar MAdE Establishment empire.
His award-winning Press Club restaurant in Melbourne was transformed into Elektra under Executive Chef Reuben Davis.
The Hellenic Hotel in Williamstown has also been carefully re-branded into an Argentinian restaurant, Hotel Argentina, run by chef Dan Szwarc.
Hotel Argentina opened earlier this month, and boasts an empanada bar, a wine cellar and a restaurant.
Hellenic Republic in Kew will become an Italian restaurant called Vita, according to Good Food.
The embattled chef is understood to be focusing on his last remaining Hellenic Republic branch in Brighton, as well as his Jimmy Grants chain and Gazi in central Melbourne.
'I want to apologise to all my team, both past and present, for the effect I've had on them, we've had on them,' Calombaris said (pictured with Masterchef co-hosts Gary Meghan and Matt Preston)
