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Australia's insolvency rates spike as Gorilla Grill faces liquidation

EditorAmbhini Aishwarya
Published 11/23/2023, 01:24 AM
© Reuters.

MELBOURNE - After a decade of serving customers in Maribyrnong, the beloved Gorilla Grill has been forced to close its doors and enter liquidation, succumbing to the financial pressures exacerbated by Melbourne's extensive lockdowns and rising inflation. The once-thriving eatery, which boasted a strong online presence with over 10,000 Facebook (NASDAQ:META) fans, has accrued debts of $200,000 and ceased operations in April.

The closure of Gorilla Grill is a reflection of the broader economic challenges facing Australian businesses. In October 2023, Australia witnessed a significant rise in insolvency cases, with the Australian Securities & Investments Commission (ASIC) recording 906 instances—almost double the figure from October of the previous year, which stood at 473.

The Reserve Bank of Australia's Governor, Michele Bullock, has drawn a connection between the country's high inflation rate, currently at 5.4%, and increased consumer spending on services including dining out. In response to the inflationary pressures, the central bank has implemented a series of interest rate hikes, raising them thirteen times over an eighteen-month period under Bullock's leadership. Despite the challenging economic environment, Bullock's salary package is reported at $1.1 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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