The Australian arm of UK-based Japanese restaurant and noodle bar chain, Wagamama has gone into voluntary administration at the helm of its Australian franchisee, Edible Concepts Holdings.
Professional services firm KPMG took over the business on 29 October, and staff were informed of its financial struggles in the days following the takeover.
KMPG has opted to close the Wagamama site at Southbank in Melbourne; meanwhile the chain’s 10 remaining sites will continue to operate, reports The Age.
“The reason being was that it was not profitable,” said KPMG partner and administrator, Ian Hall.
The 10 sites will remain as KMPG attempts to sell the company off. “We are continuing to trade them,” Hall said. “It’s business as usual, and it’s early stages at this point.”
According to The Age, franchisor the Wagamama group issued a statement in relation to “the recent news regarding Edible Concepts Holdings, wagamama’s Australian franchisee.”
“The Wagamama group is supportive of the process to ensure the franchise is well placed for future growth,” the statement read.
“It firmly believes that there is significant potential for the iconic brand in the Australian marketplace, which is reinforced by strong research results amongst consumers and looks forward to continuing to offer its Australian customers the unique Wagamama experience.”
Wagamama will continue to operate in:
- Carindale Westfield, Brisbane
- Chermside Westfield, Brisbane
- Emporium, Brisbane
- Wintergarden, Queen St Mall, Brisbane
- Canberra Centre, Canberra
- Chadstone, Melbourne
- Flinders Lane, Melbourne
- Subiaco Square, Perth
- The Galeries, Sydney
- Bridge St, Sydney