Melbourne's Lobster Cave Restaurant Faces Closure Amid Owner's $11 Million Debt Crisis
The well-known Lobster Cave restaurant in a swanky Melbourne suburb is at risk of closure as its owner is chased over $11million worth of debt connected to his other failed business ventures.
The seafood restaurant in seaside Beaumaris, south-east Melbourne, was reportedly issued with a winding up notice last week. The restaurant, which made headlines in 2017 when then Victorian Opposition leader Matthew Guy was spotted having dinner with an alleged Melbourne mafia boss in an incident the tabloid press dubbed 'lobster with a mobster', is run by chef Vasilios Fergadiotis, who goes by Bill Ferg.
Flexicommercial, a 'buy now, pay later' commercial lending firm, lodged winding up proceedings against Mr Ferg’s 37-year-old business last week, according to an ASIC notice. A hearing is due to take place on September 16 at the NSW Supreme Court.
Mounting Debt and Failed Ventures
A number of Mr Ferg's food wholesale businesses have also collapsed. He is the sole director of Extramile Trading, which went into liquidation earlier this year with debts of $8.6million, reported news.com.au. Extramile, which had five employees, operated as a wholesaler of dairy, meat and seafood to the hospitality and food service industry from Braeside in Melbourne's south-east.
There are 64 unsecured creditors owed $7.225million, according to a statutory report the appointed liquidator, Stephen Dixon of insolvency Hamilton Murphy, submitted to the corporate regulator last month. Another of Mr Ferg's dairy and vegetable wholesalers, Green Earth Industries, went bust with debts of $856,000. Mr Ferg took over the two-decade-old business in February this year. The business went under three months later.
Fonterra Brands, the company behind Bega cheese, Perfect Italiano cheese, and Western Star butter, is its largest creditor, owed $493,000. Mr Ferg was also recently made the sole director of Marsh Dairy Products, a business specialising in the distribution and packaging of dairy products. The business is now in administration with debts of around $2.5million but continues to trade. The administrator said he had been able to pay $273,000 back to creditors and had negotiated a sale of the company.
A Troubled Past and Uncertain Future
The winding up notice against Lobster Cave comes at a time when Mr Ferg is facing significant financial challenges. The restaurant has been a popular destination for locals and tourists alike, known for its fresh seafood and lively atmosphere. The news of its potential closure has sent shockwaves through the community.
Mr Ferg's business dealings have come under scrutiny in recent years, with several of his companies facing financial difficulties. The collapse of Extramile Trading and Green Earth Industries highlights the precarious nature of the food wholesale industry and the challenges faced by small businesses in an increasingly competitive market.
The future of Lobster Cave remains uncertain. While the restaurant continues to operate, its fate hinges on the outcome of the winding up proceedings. If the court orders the restaurant to be wound up, it will be a significant loss for the local community and a stark reminder of the risks associated with running a business in the current economic climate.
The restaurant's history of attracting attention for its association with high-profile figures, as well as its connection to a number of troubled business ventures, has further fuelled public interest in its future. It remains to be seen if Lobster Cave can weather the storm and remain a staple of Melbourne's dining scene.
Lobster Cave's Journey: From Culinary Hotspot to Financial Crisis
Lobster Cave's journey from a thriving culinary hotspot to a potential casualty of financial woes is a reminder of the challenges faced by businesses across various sectors. The restaurant's association with Mr. Ferg's other ventures, which have experienced significant financial difficulties, has undoubtedly contributed to its current precarious position. It remains to be seen if Lobster Cave can overcome its financial challenges and continue to serve its loyal customers. The situation underscores the interconnectedness of various business ventures and the ripple effect that financial distress can have.
'We are limited in what we can say at this time because of litigation and negotiation matters, as we deal with the challenges,' Mr Ferg told news.com.au.
