Owners of Lucky Bat in Nightcliff, Justin Schmidt and Danny Crichton, seek insolvency advice

There are concerns about the future of a popular Nightcliff bar after the owners sought insolvency advice.

The owner of a popular suburban Darwin cafe has said it will continue to operate next year, despite the business contacting insolvency advisors.

Management of Lucky Bat in Nightcliff has been in discussions with Sydney business advisory company Olvera Advisors about its future trading options.

Olvera Advisors is a boutique consultancy business based in Sydney

The NT News understands there’s concerns the company’s management are preparing to shut down the Nightcliff cafe to concentrate on its CBD business.

It understands there are fears money from Lucky Bat investors is also flowing in to the CBD venture, which past investors in the Lucky Bat may have no material interest in despite helping fund its development.

Attempts to sell Lucky Bat this year have so far been unsuccessful.

A letter sent by Lucky Bat management, seen by the NT News, raised concerns about Lucky Bat’s short-term future.

The letter on an Olvera Advisors letterhead announced a meeting at 11pm on December 21 2020 (sic) “to consider the passing of the proposed special resolution to wind up the Company voluntarily and a further resolution to appoint Joint and Several Liquidators ...”

Lucky Bat Co-manager Justin Schmidt declined to respond to questions about whether Lucky Bat would be liquidated.

The Lucky Bat in Nightcliff.

Mr Schmidt said the business was not in liquidation and despite management moving “in a new direction”, he and co-manager Danny Crichton were committed to re-opening in 2023.

He provided a written response to a series of questions from the NT News.

“After over seven years of building Lucky Bat and keeping it going through the tough period of Covid it is time for us (Danny and Justin) to move in a new direction. It will definitely reopen next year after a well earned Xmas break,” the response said.

“It has been a huge project and we are proud of what we created in Nightcliff, a local cafe, bakery, pizza restaurant, bar and venue. It’s been a journey creating a space where local artists and community have been able to come together.

“We’ve been lucky to have hosted hundreds of events at the Bat including much loved local artists and interstate talent too. Highlights have included Francis Diatchenko, Neil Murray, Mr Monk, Rob Snarski and many more. That will continue in the new year.

“It has not been easy for us, or any hospitality businesses, dealing with Covid. We wish to thank all our staff, performers and customers for supporting us and creating something new and interesting for Darwin.

“We are in current negotiations to get the best outcome for stakeholders which obviously includes staff and shareholders and to keep the bat viable as an entity in the future.”

Olvera Advisors director Mirzan Mansoor told the NT News Lucky Bat management contacted the business advisory company to develop a strategy for its future direction.

Mr Mansoor said Olvera Advisors had discussions with Lucky Bat pending a formal arrangement and that nothing was yet in place.

“Lucky Bat approached our office to explore options for the future of the company,” Mr Mansoor said.

“We’re not formally appointed, we’ve only had discussions.

Bustard Town in Darwin CBD

“Putting aside the Lucky Bat specifically, hospitality has had some tough years and they’re looking ahead to better times.”

There are concerns Lucky Bat is being prepared for closure, with the focus now on the Bustard Town business in Knuckey St.

A stakeholder, who didn’t want to be named, said: “Based on the conversations I’ve had and the correspondence I’ve seen they are preparing to place Lucky Bat into liquidation and focus on the CBD business.”

“Investors want to know whether the money they contributed to develop the Lucky Bat has been spent developing the city business and whether we’ll get our money back.”