URGENT UPDATE: Celebrity chef Scott Pickett faces a staggering $27.2 million debt as his restaurant empire collapses. Reports confirm that an arm of Pickett’s hospitality group, Rogue Traders Group, has been placed into administration after failing to manage its accounts since 2022.
The crisis escalated when Rogue Traders struggled to meet its debt repayments to the Commonwealth Bank. Pickett appointed administrators to three companies associated with his restaurant group in late September 2023, putting the future of several popular venues at risk.
Among the affected restaurants are Matilda 159, Smith St Bistrot, Longrain, and Chancery Lane, all of which remain operational despite the company’s financial turmoil. This comes as the First Guardian superannuation fund, which had a joint venture with Rogue Traders, also collapsed earlier this year amid investigations by the corporate watchdog.
A recent report from administrators at Romanis Cant suggests Rogue Traders may have been trading while insolvent for over a year. This serious allegation stems from a lack of repayments to the Commonwealth Bank, which holds security over all of Rogue Traders’ assets. It is anticipated that the bank will recover the full $12.8 million it lent to the group, but the fate of the $14 million owed to First Guardian remains uncertain.
The financial strain has hit hard, with Matilda 159 in South Yarra owing $5.6 million and Chancery Lane in the CBD owing $5.8 million to Rogue Traders. The situation continues to develop as the business engages with potential investors looking to restructure and infuse cash into the beleaguered empire.
As the news unfolds, the impact on employees and patrons of these beloved restaurants is profound. Many are left wondering about job security and the future of their dining experiences. The urgency of the situation cannot be overstated, as stakeholders eagerly await further developments in this high-profile case.
Stay tuned for more updates as authorities and administrators work to navigate the fallout from this staggering financial collapse.
