El Agulia restaurant the latest victim of COVID-19

A well-known Brisbane Mexican restaurant has collapsed into liquidation owing creditors thousands after COVID-19 crippled its cashflow.

A prominent Mexican restaurant which has served customers at Nundah for more than half-a-decade has become the latest victim of COVID-19.

El Agulia, the North American-inspired restaurant on Sandgate Rd, built a strong base of customers in the six years before it was put into liquidation this week.

Control of Rising Sun Food & Beauty Pty Ltd, trading as El Aguila, was voluntarily handed to liquidator Nikhil Khatri of Worrells Solvency and Forensic Accountants.

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On November 13 the restaurant told its customers it would close temporarily, however director

Lawrence Ponnuswamy decided on Wednesday to voluntarily put the company into liquidation.

El Aguila owes four creditors a combined $52,792, according to a financial report authored by Mr Ponnuswamy - who was contacted for comment.

El Aguila Mexican Restaurant and Bar was known for its mouth-watering menu and margarita cocktails.

Commercial real estate company Cushman and Wakefield is the largest creditor, owed $49,913.

El Aguila in Nundah has closed.

Moco Food Service, Origin Gas and AGL Energy are each also owed a small amount.

“The director advised the cause of the company’s insolvency was due to the lack of trade due to the effects of COVID-19,” Mr Kharti said.

“The director advised the company commencing trading the business in April 2014.

“We are not aware of any other company trading on the business.”

COVID-19 has claimed hundreds of Queensland businesses this financial year.

Thousands more are expected to collapse after December 31 when key government stimulus programs end.

Businesses still struggling to stay alive should consider closing, with leading insolvency firm Jirsch Sutherland declaring now is “crunch time” for them to survive or die.

December 31 will mark the end of the insolvent trading moratorium, the first tranche of JobKeeper 2.0 and the commercial eviction moratorium.