The operators of the restaurant Ítalía have been sentenced to a three-year ban on operating a business. Elvar Ingimarsson and Björgvin Narfi Ásgeirsson, former owners of Ítalgest ehf., the company that ran the restaurant, were sentenced to a ban by the Reykjavík District Court on 12 January. The Court of Appeal has now upheld the District Court’s ruling.
Efling Union launched actions in September 2024 in response to exploitation, wage theft, and violations of workers’ rights at the restaurant Ítalía, as well as at other restaurants operated by Elvar and Björgvin Narfi. The union drew attention to numerous and serious breaches of workers’ rights at these establishments, which had persisted for a long time. Efling’s delegate council adopted a resolution at its meeting on 12 September 2024, condemning labour exploitation and wage theft at the restaurant. Following the meeting, a solidarity protest was held on Frakkastígur outside the venue.
Efling also gathered testimonies from employees who had worked at restaurants run by Elvar and Björgvin Narfi, collected evidence, and brought it forward to highlight the violations against workers. This led to considerable media coverage.
Ítalgest was declared bankrupt on 9 October 2024. Subsequently, Elvar attempted to claim that Efling’s legitimate actions had caused the bankruptcy. This was untrue, as a petition for bankruptcy proceedings had been filed a week before Efling’s actions began. This clearly demonstrated the extent of the financial difficulties into which the owners had driven the company through irresponsible management and violations against staff.
The District Court ruling, and its confirmation by the Court of Appeal, establishes the nature of the misconduct in the company’s operations. The trustee of the bankruptcy estate, Björn Þorri Viktorsson, demanded that Elvar and Björgvin Narfi be banned from operating a business due to their involvement in the company, whose operations resembled organised criminal activity rather than a restaurant business. Numerous unexplained payments were found to have been transferred from the company to their personal accounts or to individuals connected to them by family ties. Claims against the estate amounted to approximately ISK 116 million, while virtually no assets were found.
As stated, Elvar Ingimarsson and Björgvin Narfi Ásgeirsson have therefore been sentenced to a three-year ban on operating a business, the maximum penalty under the law.
Efling welcomes this outcome, as it represents action against what appears to have been long-term organised misconduct by the two men. It is unacceptable that individuals can violate workers’ rights for years without consequences.