Cocktail bars, bakeries go bust amid COVID crisis
A BRISBANE tapas bar, California-inspired cocktail bar and two Far North Queensland bakeries have been put into liquidation as the COVID-19 crisis continues to bite hospitality businesses.
In a sign coronavirus is shifting from a health crisis to an economic one, an increasing number of Queensland businesses have been put into liquidation, administration or had winding up proceedings started.
Fortitude Valley's The Stand Cocktail Bar, which offered deconstructed desserts and classic cocktails, collapsed into liquidation on May 6.
The Stand, located in the Valley's California laneway, was launched in November 2018 by Brisbane foodie Shay Hayston.
The collapse of The Stand Cocktail Bar Pty Ltd also took down Mr Hayston's tapas bar, Poco - with the restrictions imposed by coronavirus spelling the death knell for the companies.
"It just stopped, suddenly come to a halt and you've got to pay suppliers which just don't stop," he said.
"We went from 1000 to 100 (sales) like that."
Mr Hayston's second company, No5 Cafe (West End) Pty Ltd, was also put into liquidation.
SM Solvency Accountants Partner Brendan Nixon said the West End cafe ceased trading one year ago and has liabilities of about $100,000.
Mr Nixon said he would continue to chase the director of The Stand Cocktail Bar Pty Ltd for a list of liabilities.
Mr Hayston's Fortitude Valley No5 Cafe continues to operate unaffected, which allowed him to pay down "not a huge amount" of creditor debt from The Stand Cocktail Bar and Poco.
The young business owner said the cocktail and tapas bars had each made a name for themselves and hoped both would reopen under new management.
In Far North Queensland Cairns Bakery, Pie House in Townsville and Cooltrip Pty Ltd were also put into liquidation on May 1.
Director Paul O'Kane could not be reached for comment.
Mr Nixon encouraged businesses emerging from the coronavirus pandemic to continually assess their operations - particularly if sales had slowed.
"Don't panic, but constantly, during and post lockdown, make assessments as to cash flow and look at different options," he said.
Originally published as Cocktail bars, bakeries go bust amid COVID crisis