Calia Australia sacks 100 staff in a ‘shock’ email just days after Christmas

One of Melbourne’s top Japanese restaurant chains abruptly sent an email to staff telling them they have no job to return to after the Christmas holidays.

About 100 Calia Australia employees received the email last Thursday, December 28, advising the chain’s stores in the Emporium and Chadstone CBD shopping center would close.

Co-founder Jason Chang, a City of Melbourne councilor, blamed his financial problems on “the world’s longest lockdown”, despite it ending more than two years ago.

Staff were also told that the company’s email accounts were ‘no longer monitored’ so they should direct all queries about wages and pensions to the liquidator, Jirsch Sutherland.

The email stated that management had struggled to keep the chain afloat, but that ‘Covid-related debts’ and rising costs were forcing the chain to close.

“It is with heavy hearts and great sadness that we have to deliver the unfortunate news that Calia will be closing all Australian stores and operations from today, December 28, 2023,” the email read.

‘We understand this news may come as a shock to you, but this decision has not been taken lightly and we have worked tirelessly since the Covid lockdowns to keep our stores open.’

Staff were also instructed not to come to work.

“From now on, all agreements with suppliers will expire and all jobs will be redundant,” the email said.

‘This means that from now on all employees no longer have to attend services.

“We would like to express our deepest gratitude for the hard work, dedication and commitment that each of you have contributed to Calia and to the thousands of customers you have helped us serve over the past decade.

“It’s the people that make a company, and you have been the heart and soul of us.”

Calia Australia has not yet formally declared bankruptcy, but is expected to do so in the coming days.

It is the second company founded by Mr Chang and his business partner Ricky Thien to face financial difficulties, followed by their Puzzle Coffee chain.

Calia Australia was founded in Melbourne in 2016 and described itself as ‘a balance of experience and excellence, driven by the pursuit of perfection for the modern gastronome’.

The email instructed Calia staff (above) not to go to work and directed all salary-related questions to the liquidator

One Calia restaurant remains open in Kuala Lumpur, Malaysia.

Calia Australia went into voluntary administration last June but continued trading in the hope of finding a way out of its financial problems.

A short time later, Mr Chang revealed on social media that he was “on council” while discussing the issues facing small businesses in Melbourne.

“I have now realized that no matter how strong I try to be, I am not immune to depression and anxiety,” he wrote.

‘When I broke down, I realized I needed help to cope with the emotional stress I was facing.

‘Please don’t be afraid to ask for help, we all need a shoulder to lean on sometimes.’

However, his words affected several employees, some of whom claim they are entitled to pensions from Calia.

According to the Australian Securities and Investments Commission, the liquidator will sell all of Calia’s assets to pay off its debts, investigate its trading and close the company.

Ex-employees will only be paid their outstanding claims after the company’s debts have been settled, including the trustee’s fee.

Wages due will be the first priority for employees, followed by super and annual leave entitlements if there is enough money to cover these.

Co-founder Jason Chang (pictured with his wife Clara), a City of Melbourne councilor, previously shared that he “collapsed” while discussing matters with the council and described the closure of Calia as “painful”

In a statement, Mr Chang described the decision to Calia Australia as “painful”.

“The financial viability of running a hospitality or retail business in Melbourne is becoming increasingly challenging,” he said.

‘The long-lasting impact of the world’s longest lockdown here, inflation leading to higher wages and operating costs, exacerbated by Covid-related debt, has left Calia in an unsustainable financial position as we have continually played catch-up over the past two years.’