Melbourne’s 1800 Lasagne enters liquidation after mounting debts

2 weeks ago 3

Melbourne cult restaurant 1800 Lasagne is officially closing its doors, with liquidators appointed after the business collapsed under the weight of millions of dollars in debt.

Creditors voted to wind up the company at a meeting on Tuesday, following a recommendation from administrators that the business be closed and its assets sold, when no buyer could be found to keep it going.

Creditors have voted to liquidate the 1800 Lasagne business.

The once-thriving Thornbury eatery, famous for its lasagne, started as a lockdown-era home delivery service before growing into a popular dine-in restaurant and bar. But behind the scenes, the finances were falling apart.

At its peak, 1800 Lasagne’s revenue growth hit a record $3.8 million during the 2024 financial year. Despite its popularity, administrators found the business was unable to cover operating costs, including wages, subcontractor payments, and rent.

The decision to close the business and sell its assets follows a report from administrators advising that creditors were unlikely to see much return.

According to the report, 1800 Lasagne owes money to 133 creditors, including employees, lenders, and the Australian Taxation Office. The largest creditor is the ATO which is owed more than $2 million, and was the only creditor to vote in favour of winding up the business. Employees in attendance abstained from voting.

Administrators Todd Gammel and Matthew Levesque-Hocking, of Sydney-based accountancy firm HLB Mann Judd, found the business was insolvent as of March 31, 2021. The pair will now act as the company’s liquidators.

Founder and current director Joey Kellock, who opened the High Street venue in August 2020, is also under scrutiny.

The meeting was told an investigation was ongoing into whether the business had traded while insolvent – meaning the business continued operating despite being unable to pay its debts. If proven, Kellock could be personally liable for some of the unpaid debts.

“[Which means] the parties could pursue them [the directors], and if they can’t pay, they could potentially be made bankrupt,” Gammel said.

The company owes at least $391,000 to employees and a total of more than $2.9 million to unsecured creditors. About $382,000 of that is debt from related-party loans.

Gammel confirmed that employees would only be paid after BizCap – a secured creditor that had loaned money to the business.

“We’re working on trying to get some sort of surplus to be able to pay something to the employees. But at this stage, we can’t give you any certainty around that because we haven’t finalised the sale,” he told the meeting.

Gammel said former directors – including Kellock – could still be involved in any future sale of the businesses assets including the brand, a prospect that raised concerns among some creditors.

Jamie Oliver with Joey Kellock and Georgia and Birdie Puttock at 1800 Lasagne in Melbourne.

“I understand it’s not a great feeling to see the business continue and the directors still to be involved. That is a commercial transaction which is separate to their obligations as directors,” he said.

“If they have liability as their obligation as directors, we will be pursuing that, as will other creditors … and they will have to deal with that issue at a certain point. The acquisition or involvement in acquisition of the business is a very separate issue.”

Gammel and Levesque-Hocking are overseeing the winding-up process. Several parties have expressed interest in acquiring the brand or its assets, though any deal will require approval from BizCap. Creditors have been told to expect an update in the coming weeks.

The closure marks a dramatic fall for a venue that had become a Melbourne favourite. In 2023, 1800 Lasagne was awarded a coveted chef’s hat, with Good Food critic Besha Rodell raving: “There is simply nothing about it not to love.”

That same year, celebrity chef Jamie Oliver dined at the Thornbury venue during his time in Melbourne filming for MasterChef Australia Season 16.

“Jazz was playing, the wine was flowing. Nice energy with the staff,” Oliver said of the restaurant.

Just two weeks ago, the restaurant appeared to be business-as-usual, posting on Instagram that it was hiring chefs, urging applicants to “come join us”.

“We are looking for chefs that are driven, ambitious, excited and passionate about food and wine,” the post read. “Various roles and rosters available.”

Kellock has been contacted for comment.

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