The Wollongong Crinitis store is a "50-50 chance" of closing after the restaurant chain went into administration.
The Directors of Criniti Restaurant Group appointed Worrells Solvency and Forensic Accountants as administrators at a meeting on Monday.
"Criniti's is a well-known, well-liked chain, but like all hospitality businesses carries high overheads and is susceptible to any weakening in retail spending," said Worrells partner Graeme Beattie.
"With some locations in the group doing better than others, our first priority will be the preservation of value by identifying and closing the poorer performers, of which we expect there to be several.
As of Tuesday night the administrators were deciding the fate of the Wollongong outlet, but a spokesman said it was "a 50-50 chance of closing".
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Staff across the chain's 13 venues were told of the news in meetings on Tuesday morning,
"These will be difficult, regrettable but necessary decisions made solely because we don't believe the group as a whole can trade indefinitely while a buyer is found or some other solution is reached," Mr Beattie said.
The administrator said he understood the "shock, disappointment and trepidation" staff were feeling.
"While of little consolation to affected employees, by acting quickly to stem losses we are giving remaining employees a better prospect of ongoing work and all creditors a greater chance of being paid," Mr Beattie said.
The administrators are also deciding what happens to gift certificates already purchased.