A Gold Coast nightclub is in voluntary administration after it was unable to pay its hefty tax debt.
Restructuring practitioners were appointed to Empire Night Club RNB & Cocktail Lounge in January, but voluntary administrators stepped in this week as debts climbed above the $1m limit for a formal restructure.
Empire operates in busy Orchid Ave and was launched in 2019 by 28-year-old Matt Turner, who is also sole director of the company.
Mr Turner’s other club, Platinum Bar and Lounge, which operates above Empire via a separate company, is not in administration.
Administrator Chris Baskerville of Jirsch Sutherland said the company owed about $580,000 in tax, while $1.5m was reportedly owed to the director.
Restructuring practitioners can only be appointed to companies with debts under $1m.
Mr Baskerville said Empire nightclub, which employs around 15 mostly casual staff, would continue to operate while Mr Turner worked out a rescue deal.
“We’re looking to conduct the administration swiftly, with the intention of proposing a Deed of Company Arrangement (DOCA) that would allow the popular night-life venue to continue trading,” he said.
“Our immediate focus is stabilising the business and ensuring it continues to operate as…