Sydney nightclub and restaurant collapses into liquidation by court order owing $700k

A Sydney nightclub has collapsed after racking up more than $700,000 in debt with creditors circling.

A Sydney nightclub has collapsed after racking up more than $700,000 in debt.

News.com.au can reveal that GKIII Hospitality Group Pty Ltd went into liquidation on Monday by order of the NSW Supreme Court.

The CBD-based restaurant and nightclub traded under the name The Carter Sydney.

According to its still-active website, The Carter Sydney sits at a three-storey heritage listed venue offering a range of street food and cocktails “inspired by New York’s signature architecture and food”.

A review of the business called it a “nightclub, restaurant and bar dedicated to Bey(once) and Jay (Z)”.

Ozem Kassem of insolvency firm KPT Restructuring was appointed as the liquidator.

The business appears to have been in trouble some time, appointing restructuring practitioners last year to turn its fortunes around.

A spokesperson for KPT Restructuring told news.com.au that it appears the restructure failed, with creditors still out of pocket.

The firm is now trying to determine if it racked up more debts since then.

The Carter Sydney plunged into liquidation on Monday.

It functioned as a restaurant, bar and nightclub.

Documents lodged with the corporate regulator and obtained by news.com.au reveal that The Carter Sydney had a number of creditors while it was going through its restructure last year.

It’s believed these figures are still current.

The Australian Taxation Office is owed just shy of $600,000. Of that, $85,000 is owed due to a superannuation guarantee penalty, indicating some staff might be owed money.

Indeed, APRA, the superannuation regulator, is owed a further $8000.

Behind the tax department, credit card company American Express is the second largest creditor, owed $73,000.

A DJ service and the Workers Compensation fund are also creditors.

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Several creditors have been left out of pocket.

A spokesperson for the liquidator said it was too early to know how much was owed and how many staff were impacted.

They did note, however, that the liquidator had attended The Carter Sydney’s premises on Tuesday.

They were surprised to find no alcohol or food at the venue, which would be “expected for the type of business that it was”, according to the spokesperson.

Social media posts indicated that the venue went down in a blaze of glory, throwing one more big night on Saturday before its liquidation just two days later.

Its Facebook and Instagram accounts have been since been deactivated.

News.com.au contacted the company’s director, Chady Khouzame, for comment.

GKIII Hospitality Group has been a registered business since 2015.

The company landed in a spot of trouble in 2021 during Sydney’s extended lockdown.

A document from the Independent Liquor and Gaming Authority shows that The Carter Sydney was forced to shut down for 48 hours over concerns it presented a “significant threat or risk to the public interest”.

A police officer raised concerns in the wake of restrictions being placed on pubs and restaurants as the Covid-19 lockdown lifted.

The Carter Sydney acknowledged that the number of customers visiting their site at the time had exceeded expectations.

The venue disputed the penalty.

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Originally published as Sydney nightclub and restaurant collapses into liquidation by court order owing $700k