The majority of Max Brenner stores – including Wollongong – will close for good on Monday after administrators took less than a week to decide they were unsalvageable.
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Administrators McGrathNicol, who were appointed on Sunday, said on Friday evening that 20 of Max Brenners's 37 stores would be closed at 5pm on October 8.
"The decision to close stores is always regrettable but in this case we were left with no choice following a store-by-store review of Max Brenner operations," administrator Barry Kogan said.
“The remaining 17 stores in the Max Brenner network will stay open and it will be business as usual in these stores. These stores are profitable and will be offered for sale or recapitalisation."
Max Brenner has 600 staff in Australia, and those working at the soon-to-be closed stores will be made redundant, McGrathNicol said.
Max Brenner Australia, which was started in 1999 and is owned by the former BRW Young Rich Listers Tom and Lilly Haikin, appointed voluntary administrators on Sunday citing rising costs and sluggish retail trade.
The Max Brenner brand started as a small chain of chocolate shops in Israel and Mr Haikin was reportedly instrumental in developing the "chocolate bar" model that now spans the globe, with stores in the US, Japan and Russia.
McGrathNicol said it hopes to secure the future of the remaining Australian stores through a deed of company arrangement, or by selling it to new owners.
"Based on the strong interest we have received to date we expect a high volume of inquiries," Mr Kogan said.
A first meeting of Max Brenner creditors will be held on October 11.
Max Brenner's collapse comes after other food chains and retailers have come under pressure amid subdued consumer spending. Celebrity chef Jamie Oliver's chain of six Jamie's Italian restaurants went under in April, while Retail Food Group - which owns Gloria Jeans and Donut King - sank to a $306 million loss last year.
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STORES TO BE CLOSED
1. Wollongong
2. Kingston ACT
3. UNSW (Kensington) NSW
4. Central Park (Chippendale) NSW
5. Newtown NSW
6. Parramatta NSW
7. Casuarina Darwin NT
8. Gasworks (Newstead) QLD
9. Portside (Hamilton) QLD
10. Milton QLD
11. Townsville QLD
12. Toowoomba QLD
13. Australia Fair (Southport) QLD
14. Rockhampton QLD
15. Coolangatta QLD
16. Carindale QLD
17. Rundle Street (Adelaide) SA
18. Woodgrove (Melton West) VIC
19. Joondalup WA
20. Whitford City (Hillarys) WA
STORES TO REMAIN OPEN
1. Belconnen ACT
2. Macquarie Centre NSW
3. Narellan NSW
4. Doody Street (Alexandria) NSW
5. Charlestown NSW
6. Blacktown NSW
7. Manly NSW
8. Sydney Tower NSW
9. Tuggerah NSW
10. Bondi Junction NSW
11. Surfers Paradise QLD
12. Robina QLD
13. Southbank (South Brisbane) QLD
14. Queen Victoria (Melbourne) VIC
15. Highpoint (Maribyrnong) VIC
16. Craigieburn VIC
17. Doncaster VIC
