Supreme Court confirms business ban on Italian operator

Operators of the restaurant in Italy have been sentenced to a three-year business ban. They Elvar Ingimarsson and Björgvin Narfi Ásgeirsson, former owners of Ítalgest ehf, the operating company of the restaurant, were sentenced to a business ban in the Reykjavik District Court on 12 January last year. Lansdréttur has now confirmed the district court's judgment. 

Efling trade union launched actions due to abuse, wage theft and rights violations at the Italy restaurant, as well as at other restaurants run by those Elvari and Björgvin Narfa, in September 2024. The union drew attention to numerous and serious breaches of workers' rights at the mentioned restaurants, which had persisted for a long time. Council Efling approved a resolution at its meeting on 12 September 2024 where the misuse of labor and wage theft at the Italy restaurant were condemned. After the meeting, a strike action was taken at Frakkastíg outside the restaurant.

Then Efling gathered testimonies from staff who had worked at the restaurants of their members, collected data and presented it to draw attention to violations against workers. A considerable media discussion arose because of this. 

The company Ítalgest was declared bankrupt on 9 October 2024. Subsequently, Elvar tried to argue that legitimate actions Efling would have led to the bankruptcy. That was false because a request for bankruptcy reorganization of Ítalgest had been submitted a week before actions Efling began. It therefore clearly showed the kind of mismanagement the owners had brought to the company, with irresponsible operation and violations against staff. 

Judgment of the district court, and confirmation by the Supreme Court, confirms that any kind of criminal activity took place in the operation of the association. The liquidator of the bankruptcy estate Ítalgest, Björn Þorri Viktorsson, demanded that Elvar and Björgvin Narfi be subjected to a business ban due to their involvement with the association, but its operation rather indicated organized criminal activity than the operation of a restaurant. Thus many unexplained payments were found from the association into the personal accounts of its members, or to people related to them through family ties. Claims in the bankruptcy estate amount to about 116 million krona, and no assets were found in it. 

Thus those members, Elvar Ingimarsson and Björgvin Narfi Ásgeirsson, as mentioned earlier, were sentenced to a three‑year business ban, which is the maximum penalty under the law. 

Efling celebrates that it responded to what appears to have been organized criminal activity over a long period by those members. It is unacceptable that people have come up with breaking against workers after so many years, without any consequences. 

Here you can see report Efling about the illegal activities of Elvar Ingimarsson and Björgvin Narfi Ásgeirsson.