Surfers Paradise Fabric Nightclub operator David O’Connell took on Adelaide venues before liquidation

The operator of a lively new Surfers Paradise night spot stepped in to run three Adelaide nightclubs after they collapsed with multimillion-dollar debts and pushed his ex business partner into bankruptcy.

The operator of a lively new Surfers Paradise night spot stepped in to run three Adelaide nightclubs which had collapsed with multimillion-dollar debts and pushed his ex business partner into bankruptcy.

Fabric Nightclub moved into the Orchid Ave hotspot previously occupied by famed SinCity, a long-time haunt for celebrities including Amber Heard and Usher, as well as sprinter Usain Bolt, who was there every night for a week during the 2018 Commonwealth Games.

SinCity closed and relocated from its prime Orchid Ave spot to a nearby laneway after a row with its landlord during Covid.

Usain Bolt in a picture released by Surfers Paradise nightclub Sin City to its Instagram page in 2018.

Adelaide businessman David O’Connell is behind Fabric, which opened to partygoers in May and has since posted pictures of staff with barely-there outfits and a packed venue.

Mr O’Connell is known on the Adelaide hospitality scene, as operator of the Dog and Duck on Adelaide’s infamous Hindley St, plus steak pub Little Hunter, which both remain open.

He is also director of a company that took over three venues operated by long-time friend and business partner John Meek.

Four of Mr Meek’s venues have gone into liquidation in the past 18 months, leaving debts of more than $10m between them.

Mr O’Connell’s company took over operations of Black Bull, Woolshed and Ambassadors Hotel after they were evicted over unpaid rent in June last year.

David O'Connell and John Meek at the Black Bull Hotel on Hindley Street, Adelaide.

The fourth venue run by Mr Meek, Precinct, went into liquidation in April this year, the same day Mr Meek, 74, declared bankruptcy.

Mr O’Connell and Mr Meek had originally operated Dog and Duck together after buying the licence and renovating it in 2015. Mr O’Connell is also a previous manager of Woolshed and Black Bull.

The Gold Coast Bulletin has contacted Mr O’Connell for comment.

There is no suggestion Mr Meek has any involvement with Fabric.

Fabric Nightclub.

Patrons of Fabric Nightclub

Liquidator Stephen Duncan was appointed to the Black Bull, Woolshed and Ambassadors companies in July 2022.

In his reports to creditors, Mr Duncan said all three ceased trading on the same day in June that year, when leases were terminated over unpaid rent.

In all three cases, the landlord entered a lease with a new operator six days later.

Property records show all three properties are owned by companies directed by high-profile South Australian businessman George Polites.

The report said the new operator of the three venues, 94 Hindley Trading, did not buy the business or pay the collapsed companies to take it over.

The 94 Hindley company is solely directed by Fabric operator Mr O’Connell, appointed in June 2022.

It is jointly owned via company shareholdings by Mr O’Connell and Meek Group general manager Andrew Chandler.

David O'Connell with John Meek at the Dog and Duck on Hindley Street. Picture: Keryn Stevens

Mr Duncan’s report said Ambassadors Adelaide had unsecured debts of $1.47m; Black Bull Hotel owed $1.14m; while Woolshed owed unsecured creditors $1.97m, including $1.3m in tax, and $625,702 in related party loans.

Mr Duncan’s report for Black Bull said the company owed $621,145 in tax and had loaned $36,222 to Ambassadors and another $254,000 to a trust related to Mr Meek.

Mr Meek’s Precinct Nightclub was also locked out by its landlord over unpaid rent in April this year after operating for just 12 months as “South Australia’s premier hip hop club.”

It had previously traded as Downtown and XL.

Liquidator Ernie Chou was appointed to company Precinct27 on April 21, two months after it was locked out due to unpaid rent.

John Meek launched Downtown in 2019 and it was relaunched as Precinct in 2022 before closing in 2023. Picture: Russell Millard

In his July report to creditors, Mr Chou said Precinct27 owed almost $5.7m to unsecured creditors – many related parties of Mr Meek – and an unknown amount to 12 secured creditors.

He said his investigation had found possible unfair preference payments, insolvent trading and uncommercial transactions.

There was no suggestion in any of the liquidators’ reports of any wrongdoing by Mr O’Connell, Mr Meek or Mr Chandler.

As well as taking over three Meek hotels, Mr O’Connell is also linked to defunct nightclub Precinct.

Mr O’Connell registered the website for his Vegas Group using the ABN of Precinct27, and the site lists his Dog and Duck hotel alongside Precinct, Black Bull, Woolshed and Ambassadors.

Outside of Fabric, the new nightclub on Orchid Ave in Surfers Paradise. Picture Glenn Hampson

Mr O’Connell is a current director of company Hindley Two Passive, of which Mr Meek is a previous director.

According to the liquidator, Mr Meek’s companies had struggled with Covid restrictions that impacted cash flow.

Before his venues failed, Mr Meek publicly shared his fears, telling the Adelaide Advertiser the rules impacting nightclubs during the pandemic were “a nightmare”.

“I’ll lose millions of dollars,” he said in 2020.

“It will bankrupt me within weeks.”

Originally published as Surfers Paradise Fabric Nightclub operator David O’Connell took on Adelaide venues before liquidation