Okami, a Japanese restaurant chain, has opted for voluntary administration for 16 of its Australian establishments, as reported by SmartCompany. The Okami network spans over 50 locations throughout the country.
According to documents filed with the Australian Securities and Investments Commission, Okami’s establishments in Victoria, New South Wales (NSW), South Australia (SA), and the Australian Capital Territory (ACT) are currently under administration.
The sites currently undergoing administration comprise Braddon and Mawson in the ACT, Cronulla, Camden, Dubbo, Marrickville, Pennant Hills, Penrith, Sutherland, and Wagga Wagga in NSW, along with Ballarat, Camberwell, Hampton, Melton, and Sunbury in Victoria, and Glenunga in SA.
Three additional enterprises, undisclosed in communication with Okami, have likewise shuttered as part of the ongoing administration proceedings.
Philip Campbell-Wilson and John McInerney of Grant Thornton were designated as co-administrators for the restaurants on December 15, 2023.
According to a statement provided to SmartCompany by Campbell-Wilson, the venues currently under administration fall under the direct management of Okami Distribution and are distinct from the broader business franchise network.
Preliminary examinations indicate possible factors contributing to the recent challenges encountered 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 anticipated to be significant creditors of the business.
The co-administrator also mentioned that the inquiry has just commenced, and the specifics will undergo further in-depth investigation.
The restaurants are anticipated to sustain their operations throughout the holiday season, providing a reprieve for their 250 full-time, part-time, and casual employees.
