X Cargo closed: Last drinks for Valley nightclub torn apart in bitter civil war

A Queensland nightclub at the centre of a bitter legal stoush has closed its doors in preparation for the appointment of corporate undertakers, a court has heard.

A Queensland nightclub at the centre of a bitter legal stoush has closed its doors in preparation for the appointment of corporate undertakers, a court has heard.

Music DJ Aydan Sturgess, part-owner of Fortitude Valley mega-club X Cargo has told the Supreme Court in an affidavit that X Cargo’s last night of trading was February 5-6, and the majority of the equipment used to operate the business including furniture and several large shipping containers were being returned to their owners.

The 37-year-old from Newstead states in his affidavit that rental company Karamel Assets Pty Ltd had terminated their rental agreement with X Cargo on February 6, forcing the return of the equipment.

It came just days after Justice Paul Freeburn ordered that two companies that run Fortitude Valley mega-club X Cargo: Three Two Three Pty Ltd (323) and Three Two Three (Services) Pty Ltd (323 Services) be wound up.

Aydan Sturgess, part-owner of X Cargo in Fortitude Valley, on right.

X Cargo bar, Fortitude Valley owners Ayden Sturgess (blue jacket white T-shirt) Angus Cattanach (right of wife, tattoo) and wife Leah Cattanach (middle) Picture Facebook

Justice Freeburn made the orders that the companies be wound up due to an irretrievable breakdown of trust between Mr Sturgess and his former business partners veteran hotelier couple Angus, 39, and Leah Cattanach, 36, from New Farm.

Justice Freeburn noted in his decision that Mr Sturgess had acted in an oppressive or unfairly prejudicial way towards his partners.

In his affidavit filed in court on Wednesday Mr Sturgess said X Cargo was no longer able to trade after Karamel terminated its rental agreement.

Bar stock belonging to 323 was moved to a warehouse also on McLaughlin St in Fortitude Valley, pending handover to the liquidator, he told the court.

The point of sale system and glassware has been stored in a residential building on site of the former beer-garden style nightclub, Mr Sturgess says in his statement.

Music industry veteran Steven Windolf from AU Music Productions also filed an affidavit in court stating that he had collected music speakers and lighting equipment he had provided to 323 for use in the nightclub.

“I was concerned that the business was no longer going to be trading and wanted to secure my goods,” Mr Windolf wrote.

Mr Windolf states in his affidavit that X Cargo manager Jackson McGuire told him on February 5 that the business may have to stop trading, and that he offered the use of his truck and warehouse.

“A truck loaded with items that I believe to be owned by 323 remains in my warehouse under an informal oral agreement with the business,” Mr Windolf wrote.

Showtime Entertainment production manager Robert Swaine told the court in his affidavit that he collected fridges and promotional screens owned by energy drinks maker Redbull from X Cargo on February 6 after reading about the impending liquidation in The Courier-Mail.

At one point the club was turning over $180,000 a week from its 73 per cent female clientele.

A search of the ASIC database shows no liquidator has been appointed to 323.

The court heard that even before Mr Sturgess launched the legal action in December 2020 arguing he owned the X Cargo business outright, the business was in financial hot water posting losses and owing a $1m debt to kitchen equipment rental company Silver Chef.

The case returns to court on February 25.