The popular Melbourne restaurant 1800 Lasagne has entered voluntary administration following a significant financial downturn, revealing a shortfall of nearly $3 million. Despite its cult following and high praise, including a coveted chef’s hat in 2023, the establishment has struggled to turn a profit since its inception in August 2020.
Minutes from a creditors’ meeting on August 11, 2023, detail the restaurant’s financial woes, which include substantial debts to the Australian Taxation Office and a large, unspecified related-party loan. A total of 133 creditors are claiming approximately $3.3 million from the business, with employees owed around $277,700 and more than $2.8 million owed to unsecured creditors.
Administrators Todd Gammel and Matthew Levesque-Hocking from the Sydney-based accountancy firm HLB Mann Judd expressed optimism about finding a buyer for the restaurant. Gammel, who chaired the creditors’ meeting, stated that while a timeline was set to identify a preferred buyer by the following Monday, flexibility would be maintained throughout the process.
“Obviously, we adapt as the process goes along,” Gammel told The Age. He added that the restaurant continues to operate, with staff motivated to keep the business alive. “The guys at 1800 Lasagne really believe in the business and want to keep it going.”
In a recent social media post, 1800 Lasagne announced it is hiring chefs, inviting ambitious applicants to join its team. The post emphasized the restaurant’s commitment to food and wine, stating, “We are looking for chefs that are driven, ambitious, excited and passionate about food and wine.”
According to Gammel, a report with further details for creditors is due on Tuesday. The creditors’ meeting minutes revealed that 1800 Lasagne had not been profitable since it began operations. The meeting outlined several factors contributing to its downfall, including ongoing cash flow issues, significant debts, and costs associated with failed expansion plans, such as a lease on a premise that ultimately did not open.
The restaurant, which began as a home delivery service during the COVID-19 pandemic, quickly gained popularity. Within a short period, it transformed into a full-service restaurant and bar, even attracting celebrity chef Jamie Oliver during his visit to Melbourne for the filming of MasterChef.
Founder Joey Kellock reiterated the restaurant’s commitment to its staff and suppliers in a post announcing its move to voluntary administration. “Our loyal suppliers and our beloved staff are and will continue to be our highest priority through this process,” he stated. He emphasized the restaurant has always been about “people, passion, and plates of love,” and encouraged the community to continue supporting local hospitality.
As the situation unfolds, both the management team and creditors await the next steps in the administration process, holding onto hope for a successful resolution that could preserve the beloved Thornbury establishment.
