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George Calombaris' long-term partner George Sykiotis departs the business

The recriminations have begun at George Calombaris' hospitality empire with his long-term business partner George Sykiotis​ suddenly departing the business after an internal audit found more than 160 staff had been underpaid $2.6 million.

Mr Sykiotis told staff he was leaving Made Establishment to spend more time with his family, but hospitality sources claim his relationship with chairman and financial backer Radek Sali​ had become increasingly strained.

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Celebrity chef George Calombaris apologises

In April of this year, staff in celebrity chef George Calombaris' restaurants were underpaid a total of $2.6 million, prompting him to apologise.

One source close to Made Establishment claimed Mr Sykiotis' position within the organisation had become "untenable" after the Fair Work Ombudsman investigation of payroll discrepancies became public in April.

In a letter to staff at restaurants including The Press Club, Gazi and Hellenic Republic, Mr Sykiotis said he would retain his financial stake in Made Establishment, which accounts for one-third of the business.

Mr Calombaris and Mr Sali also own a third each.

"I have decided to move into a consultative role across the group which will see me move away from full-time involvement.

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"The reason for this change is that my family, who have sacrificed so much for me over these years and have been such a great support, require more of me and it's now my turn to give back," Mr Sykiotis said.

He paid tribute to his friend and business partner, referring to Mr Calombaris as "one of the greatest people I have had the pleasure of sharing my life with".

The decision to end his 11-year role with Made Establishment follows a difficult few months for the hospitality business, including legal action over an alleged mass food poisoning outbreak at one of their flagship Hellenic Republic restaurants.

Mr Calombaris was also was also charged with common assault after video emerged of him shoving a teenage soccer fan at the A-League grand final in May. 

In April, Mr Calombaris blamed "historically poor processes" for the payroll bungle. 

The company was first alerted to underpayment problems by the Fair Work Ombudsman in 2015, but the issues were not investigated properly until the appointment of Troy McDonagh​ as new chief executive in October last year.

Mr McDonagh was appointed CEO after Light Warrior, the private investment company of former Swisse Wellness chief executive Radek Sali, became a significant shareholder in Made Establishment. 

The underpayment scandal caused major ructions with Mr Sali​, who told Fairfax Media that he was "prepared for a few potholes in the books" when he invested, but was not made aware that some staff had been underpaid for up to six years.

It is also also understood that financial information provided to Mr Sali's advisers last year, when they undertook due diligence on Mr Calombaris' businesses, may have overstated the performance of the Jimmy Grants chain.

Originally published on smh.com.au as 'George Calombaris' long-term partner George Sykiotis departs the business'.