The restaurant, which has been in financial difficulty for some time, has failed to meet a deadline set by the Fair Work Ombudsman to pay its employees the millions in wages that have so far gone unpaid.
Tipsy Cake is part of Dinner by Heston Blumenthal and has previously been awarded two hats in The Age, GoodFood Guide in Melbourne.
However, Crown Casino and Entertainment Complex, which leased the restaurant space along with investing millions of dollars in the establishment, has today pulled the plug on Blumenthal’s ‘elegant’ and ‘sophisticated’ dining venue.
Crown said that it had taken action to terminate the lease of the restaurant with the owner and released a statement stating:
“While this is disappointing, Crown is working to provide assistance to Tipsy Cake employees looking for employment within Crown… The provisional liquidator of Tipsy Cake, however, will need to deal with employee matters at the first instance.”
It is not yet clear when the date of termination will be announced.
It is reported that the Tipsy Cake restaurant has been under investigation for some time by the Fair Works Ombudsman in Australia for under-paying its employees, who had been working up to 25 hours in unpaid overtime.
The Fair Work Ombudsman is ‘an independent statutory agency of the Government of Australia that serves as the central point of contact for free advice’ along with investigations in to ‘workplace complaints and enforces compliance with national workplace laws’.