The 31-year-old man was already on bail for allegedly threatening to kill staff at a Warrnambool sushi shop.

He was arrested on Sunday and charged with new alleged offending, including making a threat to kill and theft.

The man fronted Warrnambool Magistrates Court on Monday.

The court heard he attended Warrnambool's Bunnings Warehouse a day earlier and asked to purchase drinks with a gift card, which was refused.

He then purchased a DIY door kit before returning to the trade counter with another drink and a knife from the shelves.

When told he would have to pay for the drink with cash, the man became aggressive.

He allegedly picked up the knife, which he held close to the staff member's throat, and said "this a f***ing knife, what do you want me to do?". The victim feared for their life, the court heard.

The alleged offending was also observed by frightened customers.

The accused man then left the store, stealing the knife, and was arrested by police on Raglan Parade.

The court heard the man was already on bail for attempting to pervert the course of justice, making a threat to kill and breaching an intervention order.

Those charges relate to an alleged incident on July 22 when the accused man attended a hospitality business in Warrnambool.

He allegedly told the owner if she didn't "shut up" her staff he would "kill them all".

The alleged threat came just days after the man was seen peering into windows of the shop, intimidating staff, a court previously heard.

The man is then accused of attempting to pervert the course of justice after repeatedly attending the sushi shop, despite being banned, and later telling police he tried to persuade the victim to withdraw her statement.

Magistrate Gerard Lethbridge said the man faced "very serious allegations" and was an unacceptable risk to the community.

Bail was refused and the man was remanded in custody until January 20.

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