Adriano Zumbo’s businesses placed into voluntary administration, with debts reportedly as high as $10 million
Thursday, August 2, 2018/
Famous celebrity pastry chef Adriano Zumbo’s businesses are reportedly facing a $10 million debt to creditors after three of his sweets-serving companies have entered voluntary administration.
The companies, 611 Pty Ltd, Mel611 Pty Ltd and I’m So Fancy Pty Ltd had administrators DW Advisory appointed on July 22. The first two companies operate eight Zumbo confectionery and pastry shops, where the last company was behind a tea room that reportedly shut down a year ago.
According to the company’s website, Zumbo operates just eight stores across Melbourne and Sydney.
Administrator Justin Holzman told SmartCompany the stores will continue to trade throughout the administration process, and at this point it was too early to determine the reason for the companies’ collapse.
“We have been investigating the affairs of the companies and we will be reporting to creditors in two weeks as to the outcome of the investigation”, he says.
“We are hopeful of there being a restructuring proposal by way of a deed of company arrangement that we intend to provide to creditors in late-August.”
Fairfax reports creditors were told at a creditor meeting yesterday the companies had an outstanding debt of around $10 million, however, those debts could reportedly be offset by the companies’ assets, which are estimated to be valued around $8 million.
Holzman would not confirm the $10 million amount to a point, but said it would be “fair to say the exposure is about that amount”.
The chef, dubbed the “sweet assassin”, “the Dark Lord of the Pastry Kitchen” and “Lord Voldecake”, among other nicknames, is best known for his extravagant and difficult dessert dishes.
Along with his range of high-end patisseries, Zumbo rose to prominence thanks to a continued set of appearances on Channel Ten’s Masterchef, including the famous season one croquembouche challenge, an iconic episode of Australian television.
The chef has also starred in his own TV show, Zumbo’s Just Desserts, and a Netflix-produced cooking show called Sugar Rush.
Zumbo has not acknowledged the collapse on social media as of yet, with his most recent post being a recipe for Vanilla Custard Flan.
“One of my faves, so simple but so tasty,” he said.
SmartCompany contacted Zumbo’s businesses, but did not received a response prior to publication.
|Passionate about the state of Australian small business? Join the Smarts Collective and be a part of the conversation.|