Popular national sushi chain liquidated after Fair Work Act investigation
Mounting tax debts and a Fair Work Act investigation have led to the collapse of national restaurant chain Sushi Bay, which had venues in NSW, Canberra and the Northern Territory.
The past month has seen the demise of several restaurants in the chain, having been placed into court-ordered liquidation.
So far three of the four remaining Sushi Bay restaurants have been liquidated by the Deputy Commissioner of Taxation.
The first store put into liquidation was Sushi Bay’s Miranda store, in Sydney’s south which was registered under the name Auskobay Pty Ltd.
The February liquidation was followed by the closure of the Campbelltown store, trading under Sushi Bay Pty Ltd, in mid-March.
Sushi Bay’s Canberra restaurant collapsed at the end of March.
Right now, only the Darwin restaurant remains, however its position is tenuous. A court heard yesterday that the tax office is demanding it be wound up over unpaid debts.
The chain is blaming pandemic related problems for its failure.
Christopher Palmer of insolvency firm O’Brien Palmer will oversee the liquidation of Sushi Bay ACT and Auskobay and is likely to do the same with Sushi Bay Darwin if the court orders a shut down.
Sushi Bay Campbeltown owes about $1.5 million in tax payments and $155,000 to trade creditors. It also has related debts of $250,000.
Eleven employees will be impacted.
The liquidator said there is some cash in the bank and creditors may get some money back. A consideration to sell is also on the cards.
Financial details and the impact of closure on Sushi Bay ACT and Auskobay are yet to be determined.
The Fair Work Ombudsman is pursuing all three Sushi Bay companies over breaches of the Fair Work Act and is seeking more than $500,000 to be paid back to employees, as well as interests and costs.
The collapse of Sushi Bay, which has been operating since 2006, follows a number of restaurant closures including The Beer & Burger Bar in Melbourne’s inner city, which went into voluntary liquidation owing around $500,000 to 10 unsecured creditors.
Manly’s Jellyfish Café folded after nearly 20 years in operation.
Popular Brisbane bakery, Bella and Tortie has also shut its doors for the final time due to labour shortages.
Irit Jackson, 13th April 2023
