McGrathNicol Restructuring confirmed partners Mark Holland,Jamie Harris and Anthony Connelly were appointed liquidators of the BCN Events Group on May 28.
BCN Events Group is owned by award-winning chef Shannon Kellam,who also owns French dining institution Montrachet in Bowen Hills. Montrachet remains open and operating as usual.
Chef Shannon Kellam also owns the French institution Montrachet.Tammy Law
BCN Events Group operates several hospitality businesses,including the Lumiere Culinary Studio and commercial production kitchen The Kneadery in Newstead,Mica Brasserie in Newstead and the CBD,and King Street Bakery in Bowen Hills.
,has also ceased processing and fulfilling orders.
“At this preliminary stage,BCN Events appears to be a casualty of the headwinds facing the hospitality industry,” Holland said.
Mica Express,in Brisbane’s MacArthur Central Shopping Centre,is among the venues to have closed.Rosanna Ryan
“In the meantime,we regret to advise there will be a disruption to the group’s ongoing operations and well-known Mica[Newstead and CBD] and King Street Bakery establishments will remain closed.
“We intend to work with staff,customers and suppliers during this difficult time.”
The news comes after a challenging few years for Kellam and his wife and business partner,Clare Kellam. They opened 1000-square-metre The Kneadery and Lumiere just as the COVID-19 pandemic began to bear down on Australia in early 2020.
The original Mica at Newstead followed soon after,in April of that year. A Montrachet at Home pivot around the same time was hugely successful,at times delivering 1000 meals a day,and would later inspire Click Chef,which launched in November last year.
The Kneadery picked up numerous wholesale customers,including Coles Local stores,but a flood-related electricity outage at the group’s Mercedes-Benz building home in early 2022 saw the Kellams lose more than $150,000 in stock.
The broader hospitality industry is facing trying times. Soaring running costs,including increased ingredient prices,rent and wages,are hitting hard at a time when the prices diners are paying at venues cannot keep pace amid a cost-of-living crisis.
One in 13 Australian hospitality businesses was predicted to fail in the next 12 months. With more than 36,000 restaurants in Australia,according to international research agency IBISWorld,the projection would mean nearly 5000 could shut between now and June 2025.
In aBusiness Risk Index report last week,Patrick Coghlan from CreditorWatch said the food and beverage industry topped the rankings for external administrations and tax office debts over $100,000,and was ranked third for arrears (invoice payments more than 60 days late).
It comes after years of upheaval for the industry. The COVID pandemic forced many businesses to pivot to takeaway,but many of the financial impacts were mitigated by government assistance as well as rent concessions. As lockdowns eased,cashed-up diners engaged in “revenge spending” to create a rebound period of bounty.
But as interest rates climbed,government agencies and other creditors became less lenient,looking to claw back their own ballooning debts. At the same time,the market became flooded with new openings that were delayed by COVID-19,diluting the pool of potential customers for existing businesses.
Shannon Kellam has been approached for comment.
with Dani Valent
