Southern Hospitality exits Australia

The local implosion of Southern Hospitality has sent shockwaves through an industry already spooked by a tough 2018.

As a heavyweight supplier of everything from crockery to cooking equipment, companies such as Southern Hospitality are seen as a barometer for the restaurant industry.

And the prognosis isn't healthy, with its recently appointed administrator, BDO, confirming Southern's Australian operations will close.

Southern, which started and will continue to trade in New Zealand, launched into the Australian market in the 1990s, opening showrooms in Artarmon, Silverwater and Newcastle.

BDO will now oversee the use of those showrooms for closing down sales.

"As yet we do not have confirmation on how much is owed to creditors," a BDO spokeswoman says.