Criniti's enters administration

Stuart Barton of BlueChip Communication - which is responding to enquiries on behalf of administrators Worrells Solvency and Forensic Accountants NSW & ACT - said Kotara was a "survivor".

Mr Barton said Manly, Wollongong, Perth, Kirrawee and Chermside restaurants have been closed, which had "cauterised the wounds".

"Of the 13 stores, a considered but rapid decision was made to permanently close five of them and the others were deemed viable on an ongoing basis," he said.

"There are no plans to close other stores."

Mr Barton said it was hoped the eight remaining restaurants - Kotara, Wetherill Park, Castle Hill, Woollomooloo, Carlton, Southbank, Darling Harbour and Parramatta - could be sold as a group.

The KOTARA branch of Italian restaurant Criniti's is facing possible closure, after the chain was placed into administration.

Worrells Solvency and Forensic Accountants NSW & ACT said in a statement the directors of Criniti's Restaurant Group had met on Monday and appointed Worrells partners Graeme Beattie, Aaron Lucan and Christopher Darin administrators of the group's 40 companies, which are involved in the operation of 13 venues.

Mr Beattie said Criniti's was a "well-known, well-liked chain".

"But like all hospitality businesses, carries high overheads and is susceptible to any weakening in retail spending," he said.

"With some locations in the group doing better than others, our first priority will be the preservation of value by identifying and closing the poorer performers, of which we expect there to be several.

"These will be difficult, regrettable but necessary decisions made solely because we don't believe the group as a whole can trade indefinitely while a buyer is found or some other solution is reached, perhaps via a Deed of Company Arrangement".

Worrells said Criniti's employees were told at meetings on Tuesday morning of the decision to wind-up the companies. The majority of restaurants were scheduled to re-open at 11am for lunchtime trading.

The Kotara restaurant is currently open.

"There is never a good way to deliver this kind of news and we understand the shock, disappointment and trepidation felt by Criniti's loyal staff," Mr Beattie said.

"While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid."

Worrells said it is "evaluating" what to do about gift certificates and other forms of pre-payments and will contact affected customers.

Criniti's is a tenant in Westfield Kotara's Rooftop dining precinct.

A spokesperson for Scentre Group - which owns and operates Westfield Kotara - said it "doesn't comment on commercial arrangements with our retail partners".