De Lago Resort on Lake Bennett ‘most probably’ will be liquidated in the coming weeks, owner says

Andrew Gunn, the owner of De Lago Resort on Lake Bennett, says customers who booked ahead for the dry season are unlikely to see refunds, as he rails against the health bureaucracy.

Andrew Gunn after reopening Lake Bennett Resort as De Lago Resort on Lake Bennett. Picture: Katrina Bridgeford.

De Lago Resort on Lake Bennett, which has been closed since NT Health issued its owner with a Public Health Order over allegedly non-compliant drinking and wastewater systems, is likely to enter liquidation in the coming weeks.

Resort owner Andrew Gunn, who turned around De Lago in 2021 after its earlier iteration under the ownership of Carolyn Reynolds was also barred from operating for similar reasons, said he is “completely gutted”.

“I’ll go back to Adelaide with my tail between my legs,” Mr Gunn said.

Asked whether he intended on placing the company which operates De Lago – LBR (NT) Pty Ltd – into liquidation, Mr Gunn was frank.

“I can’t say definitely, but most probably,” the owner said.

“I’ve spoken to my insolvency specialist and if we were allowed to reopen there would be a possibility of an administration and a chance to get the thing back alive.

“But I think it’s probably beyond that.”

Andrew Gunn during the process of renovating Lake Bennett Resort for its rechristening. Picture: Katrina Bridgeford.

Mr Gunn said it was unlikely that those who have booked ahead for the dry season would see refunds unless it was through the insolvency process, which typically only returns a few cents in the dollar, if any dividend at all, to unsecured creditors such as customers.

“Which is the last thing we wanted to do, but after almost a quarter-million-dollar hit to revenue, it’s put me with no other alternative,” Mr Gunn said.

Mr Gunn claimed he had plunged $500,000 into the business since taking it on.

“I’m probably going to lose the most,” he said.

“I’m very confused, frustrated and angry.”

Mr Gunn said most of his 13 staff had departed.

“Pretty well we’ve lost everyone,” he said.

De Lago Resort on Lake Bennett. Picture: Katrina Bridgeford.

In a series of Facebook posts last week, Mr Gunn alleged the Territory Labor Government, acting via NT Health, held a vendetta against him.

He railed against the government, reeling off a laundry list of improvements he claimed had been completed in a bid to satisfy the pointy heads within NT Health’s Environmental Health Operations branch.

Darwin hospitality kingpin Jason Hanna, of Milestone Group fame, was one of many who voiced their support of Mr Gunn online.

“The NT is such a small jurisdiction (1 per cent of the county) and yet it can be the most difficult to do business in because of piles of red-tape and zero common sense,” Mr Hanna said.

“I’m sure in hindsight knowing what you know now, you regret the decision to invest in a place that has digressed in more ways than one.”