BREAKING Popular Brisbane burger chain Getta Burger collapsed in liquidation. It closed 14 stores and had debts of over $500,000; cost of living, inflation, and the chain’s demise are to blame.
Ian Currie from BRI Ferrier told news.com.au that he had been appointed as liquidator for seven companies within the group, which had eleven trading stores yesterday morning. “All have been closed, and the staff terminated.”
He said that 107 employees, mostly casuals, have lost their jobs.
The 14 Getta Burgers that closed either because of the liquidation or before it is located in Brisbane suburbs Ashgrove, Underwood Capalaba, Clayfield Cannon Hill Victoria Point West End Bridgeman Downs Carina, and five in the outer Brisbane metro area at North Lakes Springfield Lakes Holmview Yamanto Yatala.
Mr Currie stated that wages were paid until Sunday, November 19. Staff are only owed wages for the last few days, along with any redundancy and annual leave payments.
His investigations have revealed that the superannuation for the previous three months has not been paid. “But everything else should be up to date,” he said.
Customers customers used social media and the future of the chain.
Mr. Currie said that he is still determining the financial positions of the seven firms in the group but noted that payments made to suppliers appeared to be “relatively current.”
He told news.com.au, however, that the chain owed the Queensland Revenue Office around $500,000 for payroll tax and added: “I think there are other tax obligations.”
Mr. Currie said that the lease obligations to the 14 landlords of the locations where the chain traded would be “one other large liability.”
According to his view, the chain failed because of higher food prices and lower sales.
“Food prices have increased significantly, and people are no longer spending money on takeaway, especially in the areas where stores are located,” he said, the area as the mortgage belt populated with young families.
The couple has several hospitality businesses and started with a food truck as their first venture into hospitality before starting the chain Getta Burger.
Two Getta Burger shops in Townsville continue to trade and are not affected by the liquidation.
Mr Poulter confirmed that rising costs are the reason for the chain’s demise.
He said in a news.com.au statement: “Like small businesses throughout the state and country, our stores felt the full effect of the rising costs of living.”
“It was a difficult decision for me personally and professionally to make, but it came only after I had thoroughly evaluated the operational costs of our business and its future viability.”
The company has explained how the cost of their goods has increased.
Mr Poulter stated that the chain did not accept any government assistance for COVID-19 despite moving to a business model based on takeaway and only delivery. He called upon governments to do more now to support small businesses in trouble.
He said that small businesses in the UK are faced with severe challenges due to increased costs of goods, rents, and outgoings. They also lack any assistance.