Owner Tim Matthews made the announcement on Monday, with the company engaging the services of administrator Robyn Erskine at Brooke Bird.

Mr Matthews said initial talks with the administrator have been optimistic and he hopes The Forge can continue trading as per normal across its sites for the foreseeable future.

"We have advised our team of the situation and we remain positive that we can continue to trade our way through," Mr Matthews said.

"Our staff will remain employed, our doors will stay open and we hope that the Ballarat public will continue to support us."

The Forge pizzeria first opened in Alfredton in 2010 before moving to its Armstrong Street North site in 2012, where it has since become one of the key players in the Armstrong Street dining precinct.

In 2015, The Forge opened events venue Housey Housey next to its Armstrong Street North restaurant, which closed in 2023. The Forge also operates a store in Ballarat East.

Mr Matthews said most of the debt owed by the company was tax debt, acquired during the course of the COVID lockdowns and which it could not get out from under.

"When we went into COVID it was a bit of challenge, but then COVID hit and we couldn't get out of our repayment plan with the ATO," Mr Matthews said.

"Whilst we were on that it just exacerbated over time. We got signs that we would be able to trade out of it at particular times, but it kept going. COVID is where the problem exploded.

"We had a staff shortage and people in roles that were perhaps not experienced as they needed to be. By the time we got to where we are now with the cost of living and the continual interest rate rises I just didn't see a way out of it."

Other debts include money owed to suppliers and a small amount of unpaid super, Mr Matthews said.

The Forge business should continue to trade as normal, pending any advice from its external administrators.

"Our desire is to keep trading every day, as best we can in line with what we are currently doing. If there are any changes they will be well thought through," Mr Matthews said.

Mr Matthews said the experience of his business was not unique, and that many other hospitality businesses were also feeling the pinch in the wake of the COVID pandemic.

"It would have been nice to not have been shut down for so long. If you take your revenue down from 100 to 10 per cent, you can't operate properly and you can't pay everything you need to do," Mr Matthews.

"We know that the government amended insolvency rules throughout the pandemic, but due to the impact that had on the hospitality industry we are seeing a lot more of it now.

"We know we are not the first hospitality industry to go through this, and unfortunately we don't think we will be the last."