Wagga’s Hog’s Breath Cafe was one of many businesses impacted by COVID. Photo: Oliver Jacques.
The COVID-19 pandemic was a significant factor in the demise of Wagga’s Hog’s Breath Cafe, according to liquidator documents that also revealed the company had a $616,000 debt.
Belgradan Pty Ltd, the business behind the restaurant franchise owned by married couple Graham and Belinda Daniels, went into liquidation in August after 25 years in operation.
A report filed to the federal business regulator by liquidator Steven Priest of accountancy firm RSM Australia revealed 35 companies and individuals are owed money by this company.
The biggest debt is to the Australian Tax Office (ATO), which is owed $326,000.
Fitzpatrick Real Estate ($29,900), insurance broker Peter Brown & Associates ($22,000) and Wagga Fruit Supply ($3500) are also listed as creditors.
Only one former restaurant employee is listed as being owed money ($322).
Hog’s Breath Cafe CEO Steven Spurgin said to the best of his knowledge, all former employees of the Wagga franchise received their entitlements.
“From a head office perspective, our role has been to support the franchisee during the difficult process of losing their business after 23 years of operation. We made every effort to facilitate a sale, but unfortunately, this was unsuccessful,” he said.
The former premises of Hog’s Breath on 180 Baylis Street has been leased by Temora Ex-Serviceman’s Club chef Vindana Nishad Willara Arachchi, who plans to convert it into an Australian-Sri Lankan fusion restaurant.
The liquidator report provided some insight into the reasons for Hog’s Breath’s collapse.
“The company successfully traded the Hog’s Breath cafe franchise for over 25 years, however, was significantly impacted since the COVID-19 pandemic due to a downturn in trade and of recent times, the increased inflation costs within the hospitality sector,” the report stated.
The restaurant was well known for its prime rib steak. Photo: Hog’s Breath Cafe.
Mr Priest is also the liquidator of high-end Wagga restaurant Pastorale by Meccanico, which was forced to close its doors in September.
He told Region a lot of businesses had been doing it tough since COVID-19 hit.
“Enforced shutdowns really crippled businesses; it’s hard for people to come back from them,” he said.
“If someone shuts down your company, you’ve still got to pay wages and do everything else. Once you reopen, you’ve got to re-engage clients again. The hangover from the COVID times is very difficult for small businesses, regardless of the industry.”
The number of Australian companies that went into administration in September was 70 per cent higher than September last year, according to data from the federal business regulator. Some 3633 businesses had an external administrator appointed to run them in the first three months of this financial year.
Several other Hog’s Breath Cafes have closed across Australia since 2021.
Mr Priest said the liquidation of the Wagga franchise was proceeding as expected.
“We are in the process of selling business assets and equipment, such as tables, chairs and fridges, and getting outstanding documentation from the ATO in respect of employee superannuation entitlements,” he said.
“We hope that the matter could be wrapped up within the next six months.”
Mr and Mrs Daniels started the Wagga restaurant in 1999. Prior to that, they’d run the Eagle Boys pizza store after moving to the Riverina from Tamworth.
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