Embattled Melbourne cops another brutal blow that could change the city’s once-bustling nightlife
One of Australia’s most iconic nightlife strips could look bare with several major venues under threat of shutting up shop.
Multiple bars and clubs on Chapel St in Prahran, southeast of Melbourne’s CBD, went into administration in December with unsecured creditors owed more than $4million.
Electric Bar and Somewhere Bar in Prahran have been affected along with Circus Bar, Holy Grail and La La Land in Windsor and La La Land CBD.
Documents, seen by News Corp, indicated each bar is in massive debt.
That includes $1.21million from the company operating Circus Bar, $1.26million from Electric Bar, $450,751 from Holy Grail, $682,172 from La La Land Chapel, $346,583 from La La Land CBD and $113,302 from Somewhere Bar.
The umbrella company which owns the clubs has collapsed but the venues remain open and employees have also continued receiving their entitlements, super and pay.
Many of the clubs have hosted celebrities including international pop star Dua Lipa and AFL heartthrob Bailey Smith.
The businesses are owned by Good Company Bar Group – founded by Antony Beltrame, Nicholas Young and Ben White.
Several bars and clubs owned by Good Company Bar Group, which have hosted celebrity guests like Dua Lipa (second left), have entered administration
Electric Bar and Somewhere Bar in Prahran have been affected along with Circus Bar, Holy Grail and La La Land in Windsor (pictured) and La La Land CBD
Mr Baltrame and Mr Young, the company directors, have submitted a proposal to their creditors in an attempt the rescue the bars.
‘This decision to enter voluntary administration was not made lightly, but it is a necessary step to ensure the long-term future of our venues,’ a spokesperson told Sky News on behalf of the directors.
‘We are not going anywhere. Our doors are open, our staff are secure, and we are fully committed to emerging from this process stronger than ever.’
The Australian Business Network reported Good Company Bar Group had a significant debt to the Australian Tax Office and State Revenue Office.
‘Our investigations remain ongoing, and we intend to provide an update in our upcoming report to creditors,’ meeting minutes read.
Good Company Bar Group also owns a rooftop bar in South Yarra and nightclub The Emerson.
While The Emerson nor Good Company Bar Group are in administration, another of its venues – Italian restaurant Rossi – entered administration on December 11.
‘Our initial investigations have revealed that the company has a substantially large tax debt with the Australian Tax Office and had previously tried to enter into a small business restructure plan to satisfy this debt,’ meeting minutes read.
The six venues (one pictured) owe a total of $4million to several creditors
The Business Council of Australia has labelled Victoria Australia’s worst state to conduct business.
The total number of companies that entered administration jumped from 202 in the 2022 financial year to 723 in the last financial year, according to the ASIC.
Victorian Premier Jacinta Allan defended her government, claiming the BCA had ‘a record of not understanding what’s important to businesses and working people here in Victoria’.
