Bungalow 4171 collapses as taxes, super unpaid following COVID-19 closure
In early March, as COVID set in, the owner of Brisbane cafe Bungalow 4171 told her 2400 Facebook followers that she believed many small businesses would not survive this “unprecedented time”. Eight months later, her own business has collapsed into administration
QLD Business
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A Brisbane cafe owner who predicted few small businesses would survive the COVID-19 pandemic has put her company into administration months after its doors slammed shut.
Bungalow 4171 closed its doors in April after COVID-19 crippled the cafe and now its parent company, Yelm & Co Pty Ltd, has collapsed into administration.
Control of the Central American-inspired cafe – which promoted itself as “a place that brings the neighbours together” – was voluntarily handed to SM Solvency administrator Brendan Nixon on Monday.
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Mr Nixon said the Australian Taxation Office was currently the only creditor, owed $50,000 in taxes and superannuation, however he said more could be revealed.
Director Yanira Latimer, who moved to Australia from El Salvador, said the cafe’s 50 person capacity made it unviable.
“With the COVID restrictions and distance restrictions it was imposible to make a living out of it,” she said.
“I was lucky that my lease came to an end and I decided it was better to close.
“When one door closes another opens hopefully.”
In April, following a short shift to takeaway and delivery, Ms Latimer told the cafe’s 2400 Facebook followers that it would close.
“Thank you so much for letting us be part of your life for the past 3.5 years,” she wrote.
“It was an absolute pleasure to meet so many great people.
“We wish you all the best in this difficult time and keep safe.”
The company’s assets include a coffee machine, cutlery and cups which are now located in storage, according to Mr Nixon’s early investigations.
He is also probing the transfer of a vehicle to a relative of the director after the lease was recently paid in full.
“I appreciate this is a difficult time for the company director, as well as former suppliers, employees, and customers,” Mr Nixon said.
“The indiscriminate nature of the pandemic means that businesses of all types are being exposed to cash flow shortages”.
Despite receiving mixed reviews online, Bungalow 4171 was a popular meeting place for Hawthorne, Bulimba and Morningside locals.
It first felt the pinch of COVID-19 in early March as the scale and severity of the virus was quickly becoming clear.
“This is totally unprecedented but please let’s keep calm, let’s not panic,” Ms Latimer wrote. “Queensland small businesses are beginning to feel the damage.
“2019 was a tough year and now with the panic of coronavirus, not many would (sic) survive.”
