Liquidators investigating the downfall of several Burgertory fast-food outlets have raised concerns over potential unlawful conduct, including suspicions that the chain’s founder, Hash Tayeh, maintained control of the businesses after resigning as director. This comes as the company reportedly accumulated nearly $1 million in unpaid staff superannuation.
According to a report by liquidators Pitcher Partners, Tayeh and other business partners are under investigation for their management of the businesses and alleged asset dispersal before a liquidator was appointed. They may face public examinations as part of the inquiry. The report was prepared last September after the Australian Taxation Office (ATO) secured Federal Court orders to wind up 13 entities linked to Tayeh between April and July of the previous year.
Financial Troubles and Legal Challenges
The entities in question include 10 stores and three management companies associated with the Burgertory and QSR Collective brands. Despite the court-ordered liquidations, a significant portion of the Burgertory chain remains operational and unaffected. The failed companies, including locations in Box Hill, Coburg North, Black Rock, Niddrie, Caroline Springs, and Southbank, owe nearly $1 million in superannuation to staff and an additional $2.3 million to other creditors. Some stores continue to operate under new franchise ownership.
Liquidator Andrew Yeo indicated in his report that both current and former directors might have violated the Corporations Act, a matter he has reported to the corporate watchdog. Investigations are ongoing into whether the businesses traded while insolvent and if directors breached their duties.
“In the course of the liquidation, my preliminary investigations have identified several matters that warrant further scrutiny,” Yeo stated. “These include transactions involving related parties, potential breaches of directors’ duties, and the disposition of the company’s assets prior to the appointment of the liquidator.”
Hash Tayeh’s Controversial Past
Hash Tayeh, who founded Burgertory in 2018, resigned as CEO in July last year following revelations of the group’s tax debt. The tax debt disclosure came two months after Tayeh’s business was targeted with a bomb threat. Tayeh has also faced other violent incidents, including firebombings at his residence and one of the chain’s stores in Caulfield.
In response to the ATO’s legal actions, Tayeh, known for his pro-Palestinian activism, claimed, “The reality is, I’ve been subjected to targeted attacks, politically motivated smears, and ongoing harassment, not because of any wrongdoing, but because I’ve dared to speak out against injustice.”
He has described the tax case as a “stitch-up” after receiving a director penalty notice exceeding $1 million related to unpaid taxes, including staff superannuation. In a June Instagram post, Tayeh shared his experiences: “ATO vs Hash Tayeh the untold story. Since 2023, I’ve been hunted. Harassed. Firebombed. Dragged through courts. Falsely accused. And now? They’ve weaponised the ATO against me.”
Legal Proceedings and Free Speech Debates
In March last year, Tayeh faced charges for using insulting words in public after allegedly chanting “all Zionists are terrorists” at a Melbourne CBD rally in 2024. Sydney University constitutional expert Professor Anne Twomey noted that such charges could face a constitutional challenge, citing the implied freedom of political communications in the Australian Constitution.
“It raises an issue of the implied freedom of political communications in the Constitution,” Twomey remarked.
In December, the magistrate presiding over the case instructed prosecutors to prove Tayeh’s intent to insult or offend, a decision Tayeh hailed as a victory for free speech. He has denied the charge, and the case remains ongoing.
Future Implications and Examination Plans
The liquidator’s report suggests Tayeh continued overseeing the entities in liquidation despite resigning as director, with new personnel installed under the franchise model in 2023. Evidence indicates Tayeh maintained control over business bank accounts and directed instructions to accountants and solicitors.
The liquidator has been unable to locate a 2019 BWM sedan registered as a business asset and has requested information from Tayeh regarding the vehicle’s sale and location. As of the report’s date, no response has been received from Tayeh, QSR Collective, or their legal representatives.
The liquidator plans to summon Tayeh and others associated with the business for public examinations to uncover more about the company’s affairs. “The examination process is a critical investigative tool that will enable me to obtain information that may not otherwise be forthcoming,” Yeo emphasized.
