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Melbourne cafe owner accused of underpayments and trading while insolvent

Former café owner Clare Hu is facing claims of underpayment and trading while insolvent.

Hu used to own a swag of Melbourne cafes, including Bluff Town in Sandringham, The Resident in Ashburton, Stepping Stone in South Yarra and V in South Yarra.

However, the lauded businesswoman is facing claims from former employees that she owes workers at The Resident cafe $169,000 in unpaid wages.

There are also allegations that Hu traded while insolvent. The Resident Cafe, which changed to the company name Bydcafe Ashburton, was put into liquidation in October 2018.

According to a report by The Age, Hu claimed the cafe turned over more than $1.5 million a year. But liquidator Bruce Mulvaney found Bydcafe Ashburton owes $905,000.

Bydcafe Ashburton was sold to Sun Tribe High in last year for $500,000. The directors of Sun Tribe High are Hu's husband Darui Sun and Hai Gao, a resident of China.

"The company may have been insolvent from as early as 2016 when the debt owing to the Australian Tax Office started to increase and payment arrangements were made," Mulvaney told The Age.

"We will be making every effort to recover funds for the creditors and employees."



 

Sheridan Randall, 1st February 2019