Caloundra bar, The Celler, confirms venue’s closure in Bulcock Beach

The husband and wife duo behind two popular hospitality venues, including a waterfront wine bar, have revealed the reason behind the company’s shock closure.

The Celler owner Derek Murphy said an increase in rent and changing customer spending habits has forced the wine to close.

The couple behind a popular waterfront wine bar in Caloundra have confirmed their company’s collapse, succumbing to skyrocketing rent and a pullback in consumer spending.

The wine bar and restaurant, The Celler, opened up on the first floor of a waterfront block at 26 Esplanade Bulcock Beach, next door to the Sandbar Cafe and Kiosk in 2021.

According to Australian Securities and Investments Commission documents, Derek Murphy acted as the sole director and secretary for D.M.A.H Enterprises Pty Ltd, which traded as the Sandbar Cafe and Kiosk and The Celler, up until the company entered voluntary liquidation last month.

Owner of The Celler, Derek Murphy, said consecutive rent increases of eight and six per cent had left them with no choice but to close the wine bar down, as well as “significant” annual management fees.

“Last year we sought the assistance of QCAT (Queensland Civil and Administrative Tribunal) and through mediation successfully gained a reduction of management fees for 12 months, however the landlord in December last year decided once again with inflation running at six per cent to further increase the rent,” Mr Murphy said.

Mr Murphy said poor weather over the summer holidays and the ongoing impacts the cost-of-living crisis was having on discretionary spending also played into the decision to ultimately place the business into voluntary liquidation.

“Summer was not good with hospitality taking significant hits with reduced spending and the weather did not help over summer,” Mr Murphy said.

“We met with (the real estate) after Christmas and advised the business would not survive with their costs and drop in revenue..

“As a result of the above it was decided the best option was to take a responsible course and place the business in voluntary liquidation, something we felt we had no choice to do.”

Liquidator at Worrels, Paul Nogueira was appointed to the company, D.M.A.H Enterprises, on February 20, this year.

In Mr Nogueira’s report to creditors on March 1, he estimated the amount owed to known creditors to be $759,000, approximately $545,935 of that debt is owed to the Australian Taxation office.

Attempts were made by this publication to contact the landlord at 26 Esplanade Bulcock Beach for comment.