What led to popular pizza restaurant’s closure

A popular Coast family-friendly pizza eatery has closed with debts of $170,000 after months of financial difficulties. And here is why.

After months of financial difficulties owners of a Noosa riverfront restaurant decided they could not reopen when their business was flooded during a wet weather event.

Pizza and pasta restaurant Madmegs & Co run by Emmett Malone went into liquidation two days before Christmas, becoming the latest Coast business to close due to the COVID-19 pandemic.

Liquidator Jarvis Archer of Revive Financial said the business owed about $170,000 in debts to its landlord, the tax office and two small suppliers.

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"The business was severely impacted as a result of COVID," Mr Archer said.

"Despite its financial difficulties, the directors had continued trading while looking to sell the business.

"However, the recent Gympie Terrace flooding due to the heavy rains caused the business to close for a day or two.

"Due to unsuccessful efforts to sell the business, and given the temporary closure, the directors made the decision not to reopen and appoint a liquidator."

Madmegs and Co closed down on December 11 after financial challenges due to COVID-19 and a flooding event.

Mr Archer said the business had a small number of staff, all who were paid their entitlements prior to liquidation.

Mr Malone and Damir Mikletic were the directors of the business.

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The restaurant was opened by Damir and Maria Mikletic in 2011 and named after their children Madison and Megan.

It moved from Thomas St to Gympie Terrace, beside Little Humid, in 2016 and welcomed ex Sirocco head chef Mr Malone and wife Lorraine to the team.

Mr Archer said investigations would be done into when the company first had difficulty paying its debts.

Noosa Chamber of Commerce president Rob Neely said the region would continue to feel the economic effects of COVID-19 in coming months as JobKeeper and JobSeeker are wound back.

Relaxations to insolvency laws will also come to an end from January 1.

Since March businesses could trade while insolvent for six months, but from next year the time frame will return to the 21 days it was previously.

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