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Melbourne bagel pioneer 5 & Dime closes as debts mount and pandemic woes roll on

Emma Breheny
Emma Breheny

Both 5 & Dime bagel stores in the CBD, including the Katherine Place flagship (pictured), have closed.
Both 5 & Dime bagel stores in the CBD, including the Katherine Place flagship (pictured), have closed.Jesse Marlow

Melbourne bagel maker 5 & Dime has closed down, appointing a liquidator on Friday morning after accruing significant debt over the past two years, due to the loss of CBD trade.

Owner Zev Forman, who began the business more than a decade ago selling at farmers' markets, says it would be near impossible to trade his way out of the debt.

All aspects of the business are being wound up, from the two city stores to its Caulfield pop-up and wholesale business that supplies many cafes and retailers. The flagship Katherine Place location's last day of trade was Friday.

A salmon bagel from 5 & Dime.
A salmon bagel from 5 & Dime. Jesse Marlow
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Forman says that while business in the city started picking up in recent weeks, it's still 60 to 70 per cent less than what it was pre-COVID-19.

"It's a bit of a surprise but also a long time coming.

"I think I've had my head in the sand a bit. I just kept thinking it would get better."

Founder Zev Forman says what was a dream business turned into a nightmare due to the loss of city workers.
Founder Zev Forman says what was a dream business turned into a nightmare due to the loss of city workers.Simon Schluter

This morning he farewelled 14 staff, including bakers and front-of-house staff.

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"I am heartbroken," Forman wrote in a post on Instagram. "The past 10 years had been a dream come true, before it became a nightmare."

Forman received more than 1000 messages from wholesale customers and bagel fans in response to the news.

"With the city being so quiet, you kind of forget that people like your product. [The response has] been really nice, and also sad."

5 & Dime's bagels won over Melburnians with their crunchy exterior and chewy texture, the result of a two-day process involving hand-shaping, boiling and baking.

Filled with quality ingredients by local producers, such as Uncle's Smallgoods and St David's Dairy, they were a lunchtime hit with office workers.

In the coming weeks, Forman, a trained chef with experience at Taxi, plans to take some time off and visit his family in New Jersey before considering his next move.

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Emma BrehenyEmma BrehenyEmma is Good Food's Melbourne-based reporter and co-editor of The Age Good Food Guide 2024.

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