Hospitality entrepreneur Faddy Zouky files for bankruptcy after court orders him to pay $9m to Chinese business partner
Hospitality kingpin and Melbourne lawyer Faddy Zouky has filed for bankruptcy just weeks after being ordered to pay a former partner $9.6m over a business venture that turned sour.
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Melbourne lawyer and hospitality giant Faddy Zouky has filed for bankruptcy just weeks after he was ordered to pay a former Chinese partner $9.6m over a failed business deal.
Mr Zouky has been tied up in litigation over the joint venture at the Royal Prince Alfred Hospital in Sydney for years after Chinese businessman Suilong Liu accused him of being misleading over the investment.
The Herald Sun can reveal Mr Zouky filed for bankruptcy on Friday, November 8, just two weeks after his assets were frozen by the Federal Court, ordering him to pay back $9.6m to Mr Liu.
The Federal Court heard Mr Zouky partnered with Mr Liu in 2015, where they agreed to open a cafe together at the major NSW hospital.
Mr Liu invested $6m for a 60 per cent share in the business, funds which he said Mr Zouky promised would only be used for the cafe.
The court heard Mr Zouky admit he distributed the cash to himself and family members, but claimed he had reinvested money into the project.
In Federal Court documents seen by the Herald Sun, Justice Ian Jackman froze Mr Zouky’s assets until the $6m was repaid, along with $3.6m in interest to Mr Liu.
Mr Zouky, a refugee turned commercial lawyer and Honorary Lebanese Consul General to Tasmania founded the Zouki Group with his brothers, which now operates cafes and retail outlets in hospitals and healthcare centres throughout Australia.
Mr Zouky has not been associated with his brothers’ businesses since 2016, which are, however, operated under the same name.
He also set the Doncaster East house price record in 2023, when his 1450sq m family home sold for $4.05m.
Mr Zouky received an Order of Australia Medal in 2012 for his service to business and multicultural communities.
Mr Liu is the chairman of Xinhaopan Group, one of the largest shoe material wholesalers in China.
Mr Zouky has been contacted for comment.
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