One of Melbourne’s top Japanese restaurant chains sent an abrupt email to staff informing them they have no job to return to after the Christmas holidays.
Around 100 staff from Calia received the email last Thursday, December 28, advising the chain’s stores in the CBD’s Emporium shopping centre and Chadstone would close.
Co-founder Jason Chang, a City of Melbourne councillor, blamed his financial woes on ‘the world’s longest lockdown’, despite it ending more than two years ago.
Staff were also advised the company’s email accounts ‘will no longer be monitored’, so they should direct all questions regarding wages and superannuation to the liquidator, Jirsch Sutherland.
The email said management had struggled to keep the chain afloat, but ‘Covid-related debt’ and rising costs drove it to closure.
Calia (above) advised 100 staff it was closing its two Melbourne restaurants in an email just days after Christmas
‘It is with a heavy heart and great sadness that we must convey the unfortunate news that Calia will be closing all n stores and ceasing operations effective today, 28th December 2023,’ the email reads.
‘We understand that this news might come as a shock to you, but this decision has not been taken lightly and we have been working tirelessly since the Covid lockdowns to keep our stores open.’
It also instructed staff not to come to work.
‘As of now, all supplier arrangements will cease and all employment positions have been made redundant,’ the email said.
‘This means that all employees will not be required to attend any future shifts from now.
‘We want to express our deepest gratitude for the hard work, dedication, and commitment that each of you has contributed to Calia and for the thousands of customers you have helped us serve over nearly the past decade.
‘It is the people who make a company, and you have been the heart and soul of ours.’
Calia has not yet gone into formal liquidation but is expected to do so in coming days.
It is the second company founded by Mr Chang and his business partner, Ricky Thien, to face financial difficulty, proceeded by their Puzzle Coffee chain.
Calia was established in Melbourne in 2016 and described itself as ‘a balance of experience and excellence driven by the pursuit of perfection for the modern gastronomist’.
The email told Calia (above) staff not to come into work and directed all wage-related questions to its liquidator
One Calia restaurant remains open in Kuala Lumpur, Malaysia.
Calia went into voluntary administration last June but continued to trade, hoping to find its way out of its financial issues.
A short time later, Mr Chang revealed on social media he had ‘broken down in city council’ while discussing the problems small businesses face in Melbourne.
‘I have now realised that as strong as I try to be, I am not immune from depression and anxiety,’ he wrote.
‘As I broke down, I realised that I needed help to carry the emotional stress I faced.
‘Please don’t be afraid to ask for help, we all need a shoulder to lean on sometimes.’
However, his words fell flat on several employees, some of who claim they are owed superannuation from Calia.
According to the n Securities and Investments Commission, the liquidator will sell all of Calia’s assets to pay off its debt, investigate its dealing and close the business.
Former employees will only be paid their outstanding entitlements once the company’s debts are settled, including the liquidator’s own fee.
Owed wages will be the first priority for employees, followed by super and annual leave entitlements if there’s enough money to cover them.
Co-founder Jason Chang (pictured with wife, Clara), a City of Melbourne councillor, previously shared he’d ‘broken down’ while discussing business with council and described Calia’s closure as ‘agonising’
In a statement, Mr Chang described the decision to Calia as ‘agonising’.
‘The financial viability of running a hospitality or retail business in Melbourne has been increasingly more challenging,’ he said.
‘The prolonged impact of the world’s longest lockdown here, inflation leading to higher wages and operating costs, compounded by Covid-related debts, has placed Calia in an untenable financial position as we were constantly playing catch up over the past two years.’