Sushi Bay chain quietly collapses as multiple restaurants ordered to liquidate

A popular sushi chain has collapsed amid an investigation into the company over breaches of the Fair Work Act and mounting tax debts.

A national restaurant chain has quietly collapsed amid an investigation into the company over breaches of the Fair Work Act and mounting tax debts.

In the past month, multiple businesses which were part of the popular restaurant chain Sushi Bay have been placed into court-ordered liquidation.

The Deputy Commissioner of Taxation began winding-up proceedings against Sushi Bay and so far three of its four remaining restaurants have liquidated.

Sushi Bay had restaurants in NSW, Canberra and the Northern Territory and at its peak, the company had a number of stores across Sydney, including in Miranda, Rhodes, Penrith, Rouse Hill, Parramatta, Carlingford and Campbelltown. It also had a store outside Sydney in Shellharbour.

Sushi Bay’s Miranda store, in Sydney’s south, which was registered under the name Auskobay Pty Ltd, was ordered into liquidation in February.

Then Sushi Bay’s Campbelltown store, trading under Sushi Bay Pty Ltd, went bust in mid-March, while its Canberra restaurant collapsed at the end of last month.

Only its Darwin restaurant remains standing but its position is tenuous.

Sushi Bay Darwin had a court hearing on Wednesday as the tax office demands it also be wound up over unpaid debts.

Sushi Bay had restaurants in NSW, the ACT and the Northern Territory.

The company’s website is yet to shut down and claims it is hiring for positions.

Sushi Bay’s director cited woes brought on by the Covid pandemic for the company’s failure.

Christopher Palmer of insolvency firm O’Brien Palmer was appointed as the liquidator of Sushi Bay, Sushi Bay ACT and Auskobay.

He is also in line to liquidate Sushi Bay Darwin if the court orders the company to shut down.

So far, Sushi Bay’s main company, based in Campbelltown, owes about $1.5 million in tax payments and $155,000 to trade creditors.

There were also related party debts of $250,000.

Eleven employees will be impacted by its closure.

The venue’s landlord is also understood to be owed money.

It’s possible creditors might receive some money back, with Mr Palmer telling news.com.au there was still some cash in the bank.

He is also considering whether to sell the business.

Mr Palmer says he is yet to receive financial information about Sushi Bay ACT and Auskobay so does not know the amount of money owed or the number of employees impacted.

The Fair Work Ombudsman was in the process of pursuing all three companies over breaches of the Fair Work Act, with more than $500,000 being sought to pay back to employees, as well as interests and costs.

ASIC records show that Sushi Bay Pty Ltd was first registered as a business in 2006.

Sushi Bay was also available on UberEats.

Sushi Bay’s collapse comes as a number of hospitality and retail businesses have gone bust amid softening market conditions brought on by the pandemic.

Last month, a popular bar and burger joint in Melbourne’s inner city, The Beer & Burger Bar, went into voluntary liquidation owing around $500,000 to 10 unsecured creditors.

A few weeks later, a beloved cafe in Sydney’s northern beaches, Manly’s Jellyfish Cafe, went into liquidation after nearly two decades of operation.

And also in December, a popular Brisbane eatery was also forced to close.

The bakery, Bella and Tortie, served its products to customers for the last time after being unable to find enough staff to keep the operation running.

The company’s sole owner, Suzi Unwin, often worked more than 12 hours a day, sometimes every day in the week from lack of staff amid skills and labour shortages.

Retailers have also been gutted by the tough economic conditions.

At the beginning of this month, e-commerce brand EziBuy, which has an online presence across Australia and New Zealand, went into administration.

In February, Australian prestige clothes firm Alice McCall went into liquidation owing $1 million to creditors.

And in January, furniture seller Brosa fell into liquidation after its restructuring attempt failed, leaving behind debts of $24 million, including $10 million to customers from unfulfilled orders.

Do you know more? Get in touch | [e-mail]