Court records show operators of X Cargo bar have faced a cash flow squeeze since mid-2019

Lawsuits now in a Brisbane court reveal the financial drama that has beset a flashy bar and entertainment venue in Fortitude Valley.

The operators of Brisbane’s flashy X Cargo bar and entertainment venue have allegedly faced cash flow problems since the middle of last year, according to court documents.

Bar owners Angus and Leah Cattanach, along with their DJ business partner Aydan Sturgess, struck a $350,000 investment deal in March 2018 with a private Gold Coast company ahead of launching the Fortitude Valley watering hole filled with shipping containers.

The money arrived in five separate instalments between March and September 2018, records show.

But weekly repayments from the trio’s McLachlan Street Holdings Pty Ltd ground to a halt in July last year, according to a lawsuit filed in Brisbane District Court by Joytree Pty Ltd, which is owned by Brian and Githa Silvester, operators of the WAG International jewellery distribution business.

Angus Cattanach, Leah Cattanach and Aydan Sturgess

Their damages claim alleges a further $20,000 was provided as a “short-term loan’’ to pay suppliers in July last year even as operatives at McLachlan Street Holdings “failed or refused to provide’’ documents needed to allow for the transfer of ownership in the business.

Angus Cattanach and his firm are defending the case, alleging that investment documents were provided to Joytree in early 2018 but never signed. They also claim that “various payments’’ continued through to December last year and just $10,000, rather than $20,000, arrived as a “further investment’’ instead of a loan.

MORE DRAMA

Meanwhile, further claims are revealed in a second lawsuit against McLachlan Street Holdings relating to alleged cashflow problems which have dogged X Cargo since the middle of 2019.

After getting nowhere with a statutory demand to recover $40,941, Zaval Cleaning Services Pty Ltd lodged a claim in the Brisbane Magistrates Court in June last year. A default judgment was entered in favour of Zaval for the full amount in August, along with an order to recoup another $3000 in interest and costs.

Since then, Zaval boss Diego Aguirre said in an affidavit that one payment was made in early October but $30,000 remains outstanding.

That prompted him to sue to wind up McLachlan Street Holdings in December, with the company lodging no defence in the case since then.

Angus and Leah Cattanach

But, in an unusual twist, David Stimpson, who was appointed by Angus Cattanach to wind up related entity X Cargo Operations Pty Ltd, has filed an affidavit supporting the liquidation of McLachlan Street Holdings.

X Cargo Operations, which co-ordinated labour services, collapsed with debts of $673,475 in late September. The bulk of the money owing, $560,565, came from McLachlan Street Holdings.

Neither Angus nor Leah Cattanach returned calls seeking comment yesterday. We couldn’t reach Sturgess.