A dining room in Sydney has been rescued, with parts of the rescue plan including sales of $ 1.15 million. Wine from his vault.
An iconic Sydney eatery and late night hangout must start again after being rescued from the brink of collapse.
Golden Century Seafood Restaurant on Sussex Street in Chinatown District went into administration in August after serving Sydneysiders for 31 years.
The eatery, famous for its wall-to-wall crab and lobster tanks, went into voluntary administration after being unable to negotiate a new lease.
The $ 4.5 million rescue plan proposed by the family behind the restaurant received overwhelming support from creditors.
It will be part financed by mass sales worth $ 1.15 million of wine from the Golden Century’s vault to a buyer.
It is slightly below the original $ 1.2 million proposed due to identified damaged or unsuitable bottles.
The plan will also allow the Wong family to settle its debts and pay most employee rights, including outstanding salaries for 65 employees.
But employees get only 47.4 cents in the dollar for redundancies.
Liquidator Desmond Teng of Chifley Advisory said it would be up to the owners whether they return this year or next year, taking into account the impact of lockdowns and the pandemic.
“There are a lot of puzzles they have to put together and there is quite a lot to commit to at the moment,” he told news.com.au.
“Rent is not cheap, employees are expensive, and there is not much income at the moment, and with the lockdown, the city is dead.”
But he said the rescue plan was a good result, backed by staff hoping to come back when the restaurant is back and running.
“It allows for a reset, and now owners can have a little more room to rethink and re-strategize when they want to shop again, subject to the Covid-19 issue and subject to the conclusion of a lease with good commercial terms, whether in the same rooms or different rooms – they have time to think about that now, “he said.
The restaurant’s kitchen and equipment will be handed over to ANZ bank.
Visited by celebrities such as Lady Gaga and Rihanna and frequented by politicians, the restaurant had made a profit of nearly $ 825,000 by the end of the fiscal year 2020/21, but suffered significant losses of $ 450,000 between July 1 and August 30 this year.
Despite its popularity, the accounts revealed that the restaurant had been struggling with losses since 2018, which had a decline of 1.1 million. Dollars in fiscal year 2018 and another hit of $ 590,000 in fiscal year 2019.
The restaurant was founded by Eric and Linda Wong, who moved to Australia from Hong Kong.