Liquidator finds high-end Noosa restaurants possibly trading while insolvent

A liquidator’s investigation into the collapse of a series of high-end Noosa restaurants has revealed potential failings by the company’s Sydney-based director.

Frenchies Brasserie Noosa has abruptly closed its doors, according to staff.

A bombshell report into the collapse of a series of high-end Noosa restaurants has revealed the company’s director may have allowed the businesses to trade while insolvent.

The latest Australian Securities and Investments Commission documents, relating to the company Bix Investments Pty Ltd, were published on Tuesday, revealing a number of possible business failings uncovered by the liquidator.

The company, which operated the Noosa venues Frenchies Brasserie Noosa, JD’s Chicken Co Noosaville and Apero Wine Bar, went into voluntary liquidation on August 7, 2024, appointing Nicarson Natkunarajah to complete the winding up.

The liquidation came after the company’s director, David Singer, suddenly closed the three venues earlier this year, telling staff in an email.

David Singer. Source: Supplied

According to the liquidator’s report to creditors, the company recorded a net loss of $15,132 in August, while the largest expense recorded for the year ending in June 2024 was $11,187 towards domestic travel.

Mr Singer told the liquidator the company's failure was due to an Australian immigration department refusal to grant nomination to staff, however Mr Natkunarajah stated poor strategic management and financial control as well as a lack of business records caused the collapse.

Mr Natkunarajah also said initial investigations indicated Mr Singer may have been trading the company while it was insolvent, opening up the opportunity for creditors to take legal action.

“I have formed the preliminary view that the director may have allowed the company to trade while insolvent,” Mr Natkunarajah said.

Mr Singer has submitted a claim of $15,545.00 in respect of unpaid wages, according to the report.

Mr Natkunarajah said at this stage in the liquidation it was unlikely unsecured creditors would receive a dividend from the company, due to there being “minimal recoverable assets”.

If creditors were to pursue legal action, Mr Natkunarajah said he believed the allegations would be “vigorously defended”.

“The ultimate recovery of funds for the benefit of creditors would be subject to the costs of litigation and I anticipate that any action taken is likely to be vigorously defended,” the liquidator’s report stated.

The total debt owed to creditors is currently estimated to be at about $78,530.

Mr Singer has been contacted by this publication for comment on the collapse of Bix Investments on multiple occasions.