Pialligo Estate creditors take possession after John Russell confirms business's closure

Pialligo Estate owner John Russell confirmed in a statement overnight that the restaurant and function centre had ceased trading as talks with financiers could not reach an agreement.

It comes as angry staff have revealed they have not been paid since March 17 and that machinery, buses and shipping containers full of equipment were removed from Pialligo Estate this week before the creditors moved in.

One former staffer said they had $7 left in their bank.

"We were all living hand to mouth," the person said.

A notice of possession was posted to the gate on Wednesday morning by the lender's legal representatives, Summer Lawyers, warning anyone trying to enter the estate "will be trespassing and liable to police prosecution".

It's understood the lender may be a real estate company based in Sydney.

The locks were also changed across the business.

A representative of Summer Lawyers said it had not been instructed to speak about the collapse of Pialligo Estate or reveal any details on how much money was owed.

"Unfortunately, I wouldn't be able to provide any information," he said.

"I can't really divulge anything other than that we act for a creditor of the owner of the land and that's as far as our interests go. We have no security over the actual business that's operating on the land."

A shipping container of items was seen being removed from The Plot - also owned by Pialligo Estate - earlier in the week.

Nearly a week after The Canberra Times revealed that Pialligo Estate was fighting for its financial survival, owner John Russell confirmed the business could not be saved in a statement released overnight.

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The decision leaves creditors, staff and untold customers of Pialligo Estate in the lurch, with no clear indication if wages and debts owed will be paid or if future events, including weddings, could be held.

"It is with a heavy heart that this evening I have to announce that Pialligo Estate has ceased trading," Mr Russell said in the statement.

"I have been unable to make an official announcement until now due to the ongoing negotiations with our financiers. Unfortunately we have not been able to reach an agreement to continue to trade the business. The financiers have confirmed that they will take possession of the venue tomorrow [Wednesday] morning.

"Pialligo Estate is a small local business and we are very much hurting for all those affected by its closure. Please understand we did everything in our power to try and keep the business running.

"Over the 10 years we've had so many setbacks, including two fires, the impact of the NSW bushfires, lost vintages, the extended impact of COVID-19, and most recently the rapidly escalating interest rates. Unfortunately we have finally succumbed to the impact of these events.

"During those tough times, we kept our staff and their families going and we tried our very best to assist the Canberra community to endure the lockdowns.

"We'd like to thank the Pialligo staff family, without your hard work and dedication we would not have made it this last 10 years.

"Unfortunately, we could not negotiate with the financiers to continue to trade at Pialligo Estate. The future of Pialligo Estate is now in their hands.

"I hope that the next owner of the estate will love and care for it as much as we all did. We wish the future owners success and we hope that the Canberra community will continue to support them in their new business operations in the future."