Japanese restaurant chain Okami has placed 16 of its Australian locations into voluntary administration, SmartCompany has reported. The Okami network covers more than 50 locations across the country.
The company’s documents listed by the Australian Securities and Investments Commission reveal that Okami locations in the states of Victoria, New South Wales (NSW), South Australia (SA) and the Australian Capital Territory (ACT) are now in administration.
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The locations under administration include Braddon and Mawson in ACT, Cronulla, Camden, Dubbo, Marrickville, Pennant Hills, Penrith, Sutherland and Wagga Wagga in NSW, Ballarat, Camberwell, Hampton, Melton and Sunbury in Victoria and Glenunga in SA.
Three other businesses, not named in correspondence with Okami, have also been closed in the same administration process.
Grant Thornton’s Philip Campbell-Wilson and John McInerney were appointed joint administrators for the restaurants on 15 December 2023.
In a statement to SmartCompany, Campbell-Wilson said that the venues in administration come under the direct management of Okami Distribution and are not part of the business’ broad franchise network.
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By GlobalDataEarly investigations reveal potential causes for the recent difficulties faced by the business.
Campbell-Wilson was quoted by SmartCompany as saying: “Based on our initial discussions with the founder of the Okami business, they believe there has been a lag effect from the Covid-19 pandemic combined with inflationary pressure on costs which has led to a decline in sales and escalated operational costs.”
The Australian Taxation Office and other entities are expected to be major creditors for the business.
The joint administrator also said that the investigation has only just begun and the details will be subject to further detailed investigation.
The restaurants are expected to continue with their operations through the holiday period, giving some breathing space to their 250 full-time, part-time and casual employees.
