Artesian companies behind Cali Beach, Havana, Tempo, Surfers Pavilion in external administration

The companies of four top Glitter Strip nightclubs have appointed external administrators to try to deal with tax debts - as the hospitality empire’s high-profile investors are revealed.

Companies behind four top Gold Coast bars have appointed external administrators to deal with a tax debt as the overall empire’s investors are revealed including founders of streetwear giant Culture Kings.

Nikhil Khatri of Worrells has been appointed restructuring practitioner of Cali Enterprises, Sincity Nightclub, Urban Loungebar, trading as Havana RnB nightclub, and Surfers Pavilion Gold Coast – part of the Artesian Hospitality Group’s Surfers Paradise empire.

Artesian managing partner Matt Keegan said it was “business as usual” and merely accounting for tax obligations paused during Covid.

Matt Keegan and Tim Martin of Artesian. Picture: Jerad Williams

Artesian operates Cali Beach Club, Surfers Pavilion, Bedroom and Havana nightclubs and White Rhino bar-retaurant in Surfers Paradise plus new Brisbane spots Tama, The Gatsby and Tax Office.

The companies in administration are solely directed by Artesian Group general manager Tim Martin.

Cali Beach Club in Surfers Paradise.

Artesian is ultimately held by multiple investors including Mr Keegan; super-selling Culture Kings label founders Simon and Tah-nee Beard; Nick Dye, son of Melbourne Cup-winning jockey Shane Dye; longtime Orchid Avenue restaurant Costa D’Oro co-owner Michael Fusco ; retired jockey Leonard Dittman and jockey son Luke; Mecca Bah owner Mark Geraghty and Kim Bracher; Natasha and Isabella Pappas; Mr Martin and wife Tracey; and pool pro Johl Younger.

Culture Kings founders Simon Beard and Tahnee Beard have been revealed as investors in the Artesian hospitality empire. Picture: Portia Large

Jockey Luke Dittman rode the Chris Waller-trained Okalani to victory in the QTIS Three-Year-Old Maiden Handicap in 2022. Picture: Greg Irvine

Mr Keegan said the clubs would continue to trade as normal with Artesian in full control.

“As with many companies, especially in hospitality, debts arose to the ATO during the prolonged closure periods during and following Covid,” he said.

“That’s the debt we’re restructuring. The Government introduced a framework to deal with these circumstances following Covid to agree a plan to finalise the debt rather than work on uncertain or informal arrangements.

“Under recommendations from our advisors, we elected to undertake a restructure to finalise the debts with the ATO rather than continue payments on informal repayments.”

Mr Keegan said the companies had no other debts or outstanding superannuation.

“Both our advisors and us are extremely confident the restructure will proceed as expected and be successful.”

Laura Ashdown at Cali Beach Club. Picture: Pedro Freitas

Restructuring practitioners can only be appointed to companies whose directors decide are insolvent, or likely to become insolvent at a future time. The move is only allowed for companies with debts under $1 million.

Mr Khatri said the ATO was the companies’ sole creditor: “The companies are continuing to operate the businesses as normal.

“If the ATO does not accept the plans, the companies do not automatically enter liquidation or voluntary administration. The Companies are not in liquidation or voluntary administration. The term ‘External Administration’ is a generic database reference used by ASIC for many types of appointments and is not in any way reflective of the type of this appointment.”

TEMPO Surfers Paradise has the green light to operate until 9am in an unprecedented move. Abbey Case, DJ Kevin Paviani and Lisa Hegedus ready to party. Picture: Glenn Hampson

Infamous Surfers Paradise club SinCity quietly changed its name to TEMPO in June, with Mr Keegan saying SinCity would go “into a much larger venue if it was to come back”.

TEMPO’s ABN is registered via the SinCity company, which is in external administration.

Before its rebranding, SinCity – famed as a celebrity haunt and for its “craziness” – relocated from its prime Orchid Ave spot to a nearby laneway in early 2020 after a landlord row during Covid.

A venue with new operators, called Fabric, moved into the Orchid Ave site earlier this year.