The restaurant business of former Masterchef judge George Calombaris has been put into administration, only months after being rocked by a staff underpayment scandal, with almost all venues to cease trading immediately and hundreds of employees affected.

Key points: KordaMentha has been appointed administrators to 22 companies in the MAdE group, which was founded by Mr Calombaris

KordaMentha has been appointed administrators to 22 companies in the MAdE group, which was founded by Mr Calombaris All employees have been paid outstanding wages and superannuation up to Monday

All employees have been paid outstanding wages and superannuation up to Monday Twelve restaurants and eateries will close immediately

A statement from KordaMentha on Monday said the company's Craig Shepard and Leanne Chesser had been appointed voluntary administrators of 22 companies in the MAdE Establishment Group.

"The appointment excludes the Yo-Chi operations which will continue to trade as usual," the statement said.

"All other venues have stopped trading immediately. Employees have been paid all outstanding wages and superannuation up to the date of the appointment."

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In a statement posted to Instagram, Mr Calombaris said that the decision was made with "deep sadness and regret" and thanked his team for their loyalty and friendship.

"On a personal note, the last few months have been the most challenging I have ever faced," he said.

"I am so sorry all our collective efforts have not proved to be enough. I'm gutted that it's come to this."

The 12 MAdE group restaurants and eateries to close their doors immediately include five fine dining restaurants and seven Jimmy Grants souvlaki outlets, with 400 employees affected.

The KordaMentha statement said the appointment of administrators followed "declining trade across venues" since the underpayments scandal.

"A major rebranding of a number of high-profile venues including Hellenic Hotel Williamstown (relaunched as Hotel Argentina), Hellenic Republic Brunswick (recently re-opened as Crofter Dining Room) and The Press Club (relaunched as Elektra) was unable to turn the business around, despite strong reviews," Mr Shepard said in the statement.

"Other factors were generally difficult trading conditions in the hospitality industry in recent years due to the expansion of the on-demand economy via services such as UberEats and Deliveroo, increasing costs, fierce industry competition and changes in consumer tastes to favour cheaper mid-tier dining options."

Mr Shepard said the administrators would seek alternative operators for the venues and engage with other stakeholders in order to realise the group's assets.

The first meeting of creditors will be held on February 20.

Staff underpaid by $7.8 million

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 12 minutes 35 seconds 12 m George Calombaris tells 7.30 he is sorry for underpaying staff and hopes he can be a 'voice for change'

Last year, Mr Calombaris told the ABC's 7.30 that he was "gutted" when he realised his businesses had underpaid staff by $7.8 million, which has since been repaid to employees.

During the July interview, he said he took full responsibility for the underpayments, but was confident of fixing the issues without closing restaurants.

Mr Calombaris built his business empire with a series of successful modern Greek restaurants. ( ABC News: Ben Knight )

The MAdE Establishment group of companies self-reported underpayments at its iconic Press Club, Gazi and Hellenic Republic restaurants.

Fair Work inspectors also found some employees at the Jimmy Grants chain — which shares some shareholders and directors with MAdE — had missed out on entitlements.

The group was forced to make a $200,000 "contrition payment" under a court-enforceable undertaking made with the Fair Work Ombudsman.

Mr Calombaris, one of the three original judges on Network 10's MasterChef, was dumped from a major West Australian tourism campaign immediately after the underpayment scandal became public.

He left the show last year.