A tax debt, lack of cash flow and a loan contributed to the downfall of Melbourne restaurant 1800 Lasagne, which – despite its cult status – never turned a profit.
Minutes of a creditors’ meeting, published this week, detail the much-loved Thornbury establishment’s shortfall of almost $3 million, while administrators expressed confidence they would find a buyer for the restaurant.
1800 Lasagne founder Joey Kellock.Credit: Ashley Ludkin
The shortfall was attributed primarily to “current liabilities which include a large related-party loan and a large debt to the [Australian Taxation Office]“, however the details of the loan weren’t specified.
A total of 133 creditors were claiming about $3.3 million from 1800 Lasagne, which began as a home delivery service during the height of the COVID-19 pandemic, before becoming a full-service restaurant and bar.
Of that money, $277,700 was owed to employees, almost $186,600 to secured creditors and more than $2.8 million to unsecured creditors, according to the minutes of the August 11 meeting.
About $200,000 in superannuation payments was owed to employees.
Appointed administrators Todd Gammel and Matthew Levesque-Hocking, of Sydney-based accountancy firm HLB Mann Judd, set a timeline to choose a preferred buyer for the business by Monday this week.
Gammel – who acted as chairperson of the creditors’ meeting – told The Age on Friday night that while Monday was the timeline set for the sale, “obviously, we adapt as the process goes along”.
The creditors’ position would continue to “play out” through the administration process, Gammel said.
“Were still hopeful of getting a sale away and parties are working very hard to do that,” he said.
“The guys [at 1800 Lasagne] are still continuing to trade because they really believe in the business and want to keep it going.”
On Instagram this week, 1800 Lasagne shared that it was hiring chefs. A post urged applicants to “come join us”.
“We are looking for chefs that are driven, ambitious, excited and passionate about food and wine,” the post read. “Various roles and rosters available.”
Gammel said creditors would receive more details in a report due on Tuesday.
He said in the creditors’ meeting that 1800 Lasagne had not “traded profitably since its inception”.
The meeting minutes read: “The chairperson advised that 1800 Lasagne Bar has failed for multiple reasons including ongoing cash flow constraints, a failure to meet all their liabilities including significant debt outstanding to related parties and the Australian Taxation Office ... and costs associated with failed expansion plans, including a lease on a premise that ultimately didn’t open, which could not be covered by trading income.
“The chairperson further advised that whilst it appears that 1800 Lasagne Bar was profitable at an operational level, the heavy cost structure of the business meant that 1800 Lasagne Bar was unable to pay all liabilities that had been incurred.”
1800 Lasagne founder Joey Kellock opened the restaurant’s first venue in August 2020, on High Street in Thornbury.
The restaurant earned a coveted chef’s hat in 2023, with Good Food critic Besha Rodell saying that “there is simply nothing about it not to love”.
In the same year, celebrity chef Jamie Oliver dined at the Thornbury venue during his time in Melbourne filming for season 16 of MasterChef.
Kellock, speaking to The Age on Friday night, reiterated his business’s position as outlined in an Instagram post on August 5, which announced 1800 Lasagne’s slide into voluntary administration.
“Our loyal suppliers and our beloved staff are and will continue to be our highest priority through this process,” the post read.
“1800 Lasagne has always been about people, passion and plates of love – and that hasn’t changed.
“We’re grateful for the support of our incredible community and encourage everyone to keep showing love and support to local hospitality.”
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