A major restaurant chain with six branches collapsed, suddenly closing all of its locations.
City Winery Brisbane Pty Ltd made the decision to enter voluntary liquidation on Wednesday, closing all locations in the Queensland capital.
Just five years after opening its first location, all of its restaurants have closed, including its Fortitude Valley and Edward St locations, as well as Ardo locations in Newstead, Milton, Hawthorne and Graceville.
City Winery chief executive Dave Cush said the escalating cost of living crisis, as well as the impact of the Covid-19 pandemic, led to the company’s demise.
Cush said he was “heartbroken” to have to make an “incredibly difficult decision.”
“A dramatic decline in consumer spending driven by the current cost of living and interest rate environment, coupled with increases in labor and operating costs, have had too large a cumulative impact on our business, coupled with the historic effects of Covid and lockdowns, for us to continue operating,” he said.
Mr Cush said the recent opening of The Star was “the final nail in the coffin”. “We simply cannot compete with an operation of that scale,” he said.
All the places suddenly closed.
Several employees are known to have been laid off.
Darren Vardy of Insolvency Options Pty Ltd has been appointed liquidator.
City Winery opened its first location in 2019, opening a converted warehouse on Wandoo St that offers winemaking masterclasses.
It was the first winery in Brisbane’s city centre since 1860, and a second branch opened shortly after on Edward St.
Ardo is set to open in 2023 with its four locations.
Mr Cush offered his “deepest apologies” and thanked customers for their support over the years.
“You’re the reason we kept going as long as we could,” he said.
“I am deeply sorry and dismayed by the impact this has had on your business.”