By Gemma Grant
Half-a-dozen popular restaurants in Melbourne’s CBD have been forced to suddenly shut by their landlord, with most owners unable to access the premises more than a week later.
The closure, which happened with less than 10 hours’ notice, impacted six stores on the ground floor of 260 La Trobe Street. It was sparked by a dispute between the landlord and sub-landlord of the property.
R.Harn owner Chavalit Piyaphanee outside his closed restaurant on La Trobe Street.Credit: Alex Coppel
But individual business owners say they are the ones caught in the crossfire.
R.Harn co-owner Chavalit Piyaphanee arrived at work on October 11 to find that the locks to his Thai-Chinese restaurant had been changed. All his stock and equipment was still inside.
The only warning was an email sent late the night before from the lawyers of sub-landlord 260 Latrobe Mercator Pty Ltd. It notified business owners that their leases could be terminated as soon as the next day.
“Seven o’clock in the morning, for every shop, all of the locks were changed … I’ve been in business for nearly 20 years … I’ve never experienced anything like this,” Piyaphanee said. He estimated the cost of food left on site to be more than $10,000 alone.
The strip of shops includes R.Harn and bubble tea store Machi Machi, as well as restaurants Kikanbo, Bingsoo, Kata Kika and Luke’s Vietnamese. Kata Kika has since reopened.
All six businesses have a rental agreement with 260 Latrobe Mercator Pty Ltd, which in turn pays rent to a head landlord.
Sazz Nasimi, a lawyer at Moray & Agnew who represents sub-landlord 260 Latrobe Mercator, said he was puzzled by the decision to suddenly close a group of small businesses.
“It is a great shame that the landlord has chosen to take the steps that it has … This is one of the more bizarre steps taken by a landlord in my close to 20 years of experience in retail leasing disputes,” Nasimi said.
A legal notice displayed on each storefront by representatives for the landlord said that the sub-landlord had breached the terms of their lease by failing to pay expenses, and that the building had been re-entered and possessed.
Piyaphanee, who also owns Thai eatery Soi 38, said R.Harn was up to date with its rental payments. Frustrated that his business remains closed, he is now considering legal action.
“We’d like our lease back. The sub-landlord and the head landlord’s argument is none of our concern. It’s got nothing to do with us at all,” Piyaphanee said.
“We’ve been biting the bullet for the past two years, [hoping] that when the State Library Station opens that business will pick up. La Trobe Street has been closed for nearly two years … that area has been a dead town.”
It is unclear when the remainder of the restaurants will be able to reopen for business. Credit: Alex Coppel
The legal notice also singled out ramen eatery Kikanbo, saying that the store had carried out “noxious, noisome or offensive business” on the premises, and “cause[d] or allow[ed] offensive smells, odours, and smoke from cooking Japanese food and ramen”.
Kikanbo owner Gilbert Kam disagreed with these statements, and said the business had been working hard to provide a positive dining experience since it opened in late June.
“That’s someone’s opinion … We have staff working eight to 10 hours a day … There’s customers every day, coming in. I don’t see anyone [complaining],” Kam said.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.