Valley karaoke bar, nightclub closes owing $250k to creditors

A luxurious Brisbane karaoke bar that opened during the Covid pandemic has entered liquidation, owing hundreds of thousands to creditors.

Yanga and Co Pty Ltd, trading as The Palace Lounge Bar in Fortitude Valley, recently entered into liquidation. Picture: Instagram/ thepalacelounge1

A Brisbane nightclub and karaoke bar has been forced into liquidation after being unable to recover from losses incurred dueing the Covid-19 lockdown.

Yanga and Co Pty Ltd, trading as The Palace Lounge Bar in Duncan Street, Fortitude Valley, recently entered into liquidation.

Self-described as “Brisbane’s premier private entertainment venue on it’s Instagram page, the popular karaoke bar and nightclub closed in March 2023 after operating for two-and-a-half years.

The venue featured an outdoor terrace with views, large private karaoke rooms available for private hiring, DJs for a nightclub offering and food and drinks.

Appointed liquidator Shahin Hussain from H&H Advisory said the business owed $254,000 to creditors, the two largest being $170,000 to the Commonwealth Bank and the tax office which was owed $54,000.

The venue never recovered from lockdown. Picture: Instagram/thepalacelounge1

The rest of the amount was owed to suppliers.

Mr Hussain said at this stage of investigation there did not appear to be an outstanding amount owed to employees, with records showing 10 casual workers were employed at closure.

“A factor in the liquidation and closure were the restrictions during Covid lockdown period where people had to sit down and couldn’t stand up, which affected a lot of bars, restaurants and the nightlife in Brisbane,” Mr Hussain said.

“They couldn’t recover from that

“They weren’t able to meet their lease requirements and the business’ landlord evicted the business.”

Mr Hussain said there were many businesses throughout Queensland still suffering from a Covid legacy debt.