Five Ipswich business owners have been allowed back into their stores temporarily after ‘heartbreaking’ repossession

The owners of five popular Ipswich businesses have had a small reprieve after the shocking news that their buildings had been repossessed on Wednesday.

The tenants of five popular Ipswich businesses have been allowed back into their buildings after the shock forced closure of their stores on Wednesday.

Five Ellenborough Street business owners were locked out of their buildings and a notice of possession was issued, barring them from entering their own stores.

The sudden closure came as a shock to the businesses, which included Rafter and Rose, lawXO, Brow & Beaute Boudoir and Elan Hair Co.

Now, Rafter and Rose cafe co-owner Candy Gazdagh has told the Queensland Times that her and her fellow tenants had been granted access to their businesses again on Thursday morning.

“We worked it out yesterday,” she said.

Ms Gazdagh said they were allowed to resume trading on a licence to operate on Thursday but only “temporarily.”

“The buildings will be sold,” she said.

“But there has been lots of support from locals wanting to buy the building.”

EARLIER:

Frustrated owners and staff of five popular Ipswich businesses have been seated on the kerb outside their shop fronts for an entire day after their locks were changed without notice overnight.

The previous owner of the buildings at 15, 17 and 19 Ellenborough Street reportedly sold the properties in July but did not inform the tenants and continued to take their rent payments.

The properties were repossessed by the mortgagee which issued a notice of possession to five businesses including Rafter & Rose, Brow & Beaute Boudoir, Elan Hair Co. and lawXO.

The businesses were forced to remain closed on Wednesday and for the foreseeable future.

Security were on site and tenants were barred from entering their stores on Ellenborough Street after a notice of possession was issued on Wednesday morning. Picture: Jessica Baker

“The landlord is in default of its mortgage with Oak and another mortgagee,” a legal representative for mortgagee Oak Capital Wholesale Fund said.

“We are working with the landlords’ tenants to verify their leases so that they can continue operating
their businesses as soon as possible.”

Co-owner of Rafter & Rose Elle Morar claimed they received no warning whatsoever of what was waiting for them when they showed up to work on Wednesday morning.

Ms Morar said her business partner Candy Gazdagh arrived to find a notice of possession taped to the entrance of her business, her locks had been changed, and her padlock had been padlocked.

“So someone went inside our cafe to change the locks,” Ms Morar said.

The other tenants of the building were faced with the same circumstances, despite most of them being ahead in their weekly rent payments.

Ms Morar said she made contact with the building’s mortgagee, Oak Capital Wholesale Fund and was referred to their solicitor.

A notice of possession was issued overnight without the tenants’ knowledge. Picture: Jessica Baker

“The notice says we can’t access the building without permission because we’ll be trespassing,” she said.

“Now it’s just a waiting game to be allowed access.”

She said neither she nor Ms Gazdagh had been contacted prior to Wednesday morning’s events, though a man in “plain clothes” had visited their business two or three weeks ago and asked questions about the way they operated.

Ms Morar believed he was sent from Melbourne to “eyeball the building”.

“What I believe has happened is the owner of the building has gone under and sold his building to someone else and that person hasn’t paid his mortgage,” Ms Morar said.

“I feel like we’re all collateral damage.”

If Rafter & Rose is not able to open its doors to customers at all on Wednesday, she estimates the cafe will lose about $3500 in turnover.

The cafe recently had to reduce its open days from seven to five due to the effects of Covid-19, so Wednesday would have only been their second day of trading for the week.

“This couldn’t come at a worse time for us,” Ms Morar said.

Rafter & Rose co-owners Elle Morar and Candy Gazdagh.

The owner of another affected business, who wished to remain anonymous, said her business also received no notice about the repossession.

She said she woke up this morning to an influx of messages telling her there was a notice of possession on her store front and arrived at work to find her locks had been changed.

She said herself and the other business owners were unable to enter their stores, even to collect personal possession.

She said lawyers for the mortgagee had demanded her and the other business owners to remove any mention of the repossession on social media.

“Security are there protecting the property so none of us can try to break in or damage the property,” she said.

“Everything belongs to me … my entire business is in there.

“It’s my busiest time of year, I’ve had to cancel a whole day of work and maybe more unless I can get back in there.”

Security are on site and tenants have been barred from entering their stores on Ellenborough Street after a notice of possession was issued on Wednesday morning.

“We’ve had nothing leading up to it, none of us were given any information, all of our rent is up to date.”

Ipswich MP Jennifer Howard said it was heartbreaking to see local businesses impacted by financial issues that didn’t involve them.

“I was horrified to learn that (five) Ipswich businesses at 15 Ellenborough Street, Ipswich were allegedly locked out of their premises overnight with no warning,” she said.

“I immediately spoke to Small Business Minister, Di Farmer who brought the matter to the attention of Small Business Commissioner Maree Adshead who has since been working closely with affected businesses to secure a positive legal outcome.

“My understanding is that the owner defaulted on their mortgage and the mortgagee has taken possession of the property.

“This is a frustrating and unnecessary setback, especially considering what these hardworking local businesses have endured in the last two years.”

An Ipswich City Council spokesman said alternative sites had been offered as interim locations for the “dislodged tenants” until the dispute is resolved.

The reported previous owner of the building has been contacted for comment by the Queensland Times.

More to follow.

Originally published as Five Ipswich business owners have been allowed back into their stores temporarily after ‘heartbreaking’ repossession