Alexandra Headland restaurant owners Juan Fifty Pty Ltd appoints liquidators

A popular Sunshine Coast beachside restaurant remains open despite its founding company entering liquidation amid “insurmountable challenges” and changed spending habits.

Juan Fifty at Alexandra Headland is among many hospitality businesses struggling following the pandemic amid a cost-of-living crisis. Picture: Mark Cranitch.

The company behind a popular Sunshine Coast Mexican restaurant has entered liquidation citing “insurmountable challenges” following the Covid pandemic and changing consumer behaviour.

Liquidators were appointed to Juan Fifty Pty Ltd on October 9, with the Australian Security and Investment Commission notice stating the company was to be wound up.

The award-winning Juan Fifty Kitchen and Bar located at Alexandra Headland will be sold and continue to operate under a new company.

Juan Fifty Kitchen and Bar. Picture: Mark Cranitch.

The company’s accountant, who did not wish to be named, said the directors of Juan Fifty Pty Ltd struggled with pressures from the pandemic and changing spending habits of customers following interest rate hikes.

“Prior to the COVID-19 pandemic, Juan Fifty Pty Ltd was a profitable and successful business,” they said.

“The owners and directors have a track record of running profitable businesses and are experienced operators who understand their numbers.”

They said the pandemic and recent financial pressures created a “challenging operating environment”.

“The business faced economic build-up, inflationary pressures, and interest rate hikes, all of which significantly impacted consumer spending,” they said.

“Despite their best efforts to adapt, including cost-cutting measures and exploring alternative revenue streams, the reduced consumer spending proved difficult to overcome.

“The combined effects of the economic build-up, inflation, and interest rate hikes presented insurmountable challenges for the business.”

The accountant said the restaurant was sold due to lenders’ “unwillingness to provide funding to the hospitality industry”.

Liquidator Jason Cronan said the circumstances, including Covid and economic pressures, around the liquidation of Juan Fifty were not uncommon among hospitality businesses on the Sunshine Coast.

“We are seeing that generally across businesses and that is what we have been told by the owners,” Mr Cronan said.

Mr Cronan said while there were no figures on the company’s debt yet it was to expected to include unpaid superannuation and tax.

“The tax office is starting to put more pressure on businesses coming out of Covid,” Mr Cronan said.