Kleinberg and Eagle Pty Ltd liquidate business behind Maryborough’s Lounge 1868 nightclub

The business behind the popular Fraser Coast nightclub has collapsed, leaving an estimated debt of $480,600 to several creditors.

An inability to cover the cost of repairs to the heritage-listed Lounge 1868 nightclub in Maryborough has been revealed as a key reason behind the liquidation of its former owners of almost 15 years.

The company behind Maryborough’s popular Lounge 1868 nightclub was carrying a debt of about $480,600 when it voluntarily wound up, documents lodged with the Australia Securities and Investments Commission reveal.

Kleinberg & Eagle Pty Ltd which owned the Wharf St nightclub before selling the building to new owners in November 2021, was liquidated four months later in March 2022.

Its only documented asset at the time it collapsed was $34 in a bank account.

Three parties related to the company were owed money, the report says, with director Daniela Orelova owed $287,684.

Cathy Kleinberg was listed as another creditor, being owed $163,446, and with the Australian Taxation Office was owed $14,128.

Scaffolding is currently around the building on 116 Wharf Street, Maryborough.

Records from CoreLogic’s RP Data show Kleinberg & Eagle Pty Ltd sold the building in November 2021 for $600,000, which was $35,000 less than what it bought it for in February 2007.

Dane Hammond from Worrells was appointed the liquidator, according to ASIC.

Mr Hammond saidthe bar had not operated for a number of years before his appointment as liquidator.

“As I understand, the business held heritage listing and was in a terrible state of disrepair,” Mr Hammond said.

“The company did not have the financial capacity to carry out the necessary repairs and ultimately the building was sold at a substantial loss on an ‘as is’ basis.”

While the liquidation is still continuing, Mr Hammond said it was unlikely there would be any distribution to the company’s creditors from what had been identified to date.

He also said it was a “very small liquidation”.

Daniela Orelova (right) was the owner of Lounge 1868, which opened in 2008 in Maryborough.

Ms Orelova said Covid was not the cause of Lounge 1868’s closure, but rather other factors like skyrocketing insurance costs, alcohol, repair works and the general running of the bar.

She said she was “relieved” to no longer have the business, and wished luck to the new owners.

Ms Orelova added it would have been helpful to receive funding support from the Fraser Coast Council or state government to help with the restoration works that needed to be done to the heritage-listed building.

The business was fined in 2020 for failing to install a compliant barrier around a public safety hazard at the site.

The heritage-listed building was originally Maryborough’s Customs House Hotel.

CoreLogic’s records show the new owners are I.J.S Maryborough Pty Ltd.

Mr Hammond’s statutory report will be released next week via ASIC.