Communal Bar and Eat House company collapses owing $750k
A premises in one of the CBD’s busiest locations couldn’t save this Brisbane pub and eatery from succumbing to debt as COVID wiped out custom.
QLD Business
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A Brisbane bar and eatery left empty when the CBD was deserted by office workers at the height of COVID-19 has collapsed into liquidation owing creditors more than $750,000.
Brahmastra Pty Ltd, trading as Communal Bar and Eat House, went bust on Monday.
The eatery, located on Brisbane Square across from Treasury Casino, was understood to have been hit hard when COVID-19 shut offices and left the CBD almost empty.
This week director Madhur Saresh handed control of the company to Worrells’ liquidator Lee Croswaite.
According to a report on the company’s finances $754,370 is owed to 27 creditors.
Charter Hall, listed as the landlord, is owed $405,205 while debts to the Australian Taxation Office top $214,477.
A suite of food and beverage suppliers are also listed as creditors including Carlton United, $15,650; PFD Food Services, $12,711 and Joval Wine Group, $4509.
Mr Saresh could not be reached for comment and the company’s phone has been disconnected.
Prior to COVID-19 Communal had seating for 200 patrons on long shared tables, 24 beers and four wines on tap, an Italian wood fired oven and private cocktail bar, according to its Facebook page.
The collapse of Brahmastra is the largest in some time, with new laws brought on by the government in response to COVID-19 reducing the number and scale of liquidations.
Administrations are down by 59 per cent nationally compared to last year in a sign businesses are relying on government measures to stay afloat.
Earlier this month credit reporting bureau CreditorWatch revealed signs of stabilisation in the corporate sector.
In September the number of businesses entering into administration rose nationally for the first time since June, up 11 per cent.
Queensland recorded a 24.1 per cent increase in business administrations in September, following a fall of 25.4 per cent in August.
CreditorWatch CEO Patrick Coghlan said the default and administration increase suggested business owners had become aware of their perilous situation.
“The slight rebound in business default and administration figures suggests that some of the so-called zombie businesses – those reliant on government support for survival – are waking up to the reality of their situation and shutting up shop,” he said.
