Paradise Rum companies enter liquidation as million-dollar debt revealed

The million-dollar debt owed by the two companies behind a popular Sunshine Coast distillery and bar has been revealed as possible buyers emerge.

Paradise Rum brands in liquidation.

A popular Sunshine Coast distillery and venue has announced it’s shock closure as liquidators reveal the million-dollar debt owed across the two companies.

The companies Paradise Rum Pty Ltd and Civil Projects Australia Pty Ltd, which traded as Paradise Rum Bar, both entered liquidation on January 17.

The Paradise Rum brand operated as two separate companies which ran the bar and bistro at Mooloolaba and a distillery venue at Warana.

Liquidator at SV Partners Jason Cronan said across the two companies it was estimated around $1.2m was owed to multiple creditors including the Australian Taxation Office and suppliers.

Mr Cronan said approximately $900,000 is owed to related parties as an investment into the businesses.

In relation to the future of the Paradise Rum brands, Mr Cronan said there was a possibility the bar and the distillery could soon be welcoming patrons back as potential owners look to buy up the popular assets.

“We have received a fair bit of preliminary interest from people about taking over the businesses,” Mr Cronan said.

“They just can’t keep running it themselves but sometimes an appointment with us drums up a little bit of support and urgency, so we are fielding some expressions of interest.”

Paradise Rum distillery opened its doors in Warana in 2021. Picture: Aisling Brennan

The Paradise Rum company took to Facebook to announce the closure of the bar and distillery, writing the business had “valiantly” battled the difficult conditions in the years since the Covid-19 pandemic.

“After two years of valiantly battling the relentless challenges posed by the Covid-19 pandemic, inclement weather, and the economic downturn, the business has reached a point where sustaining operations is no longer financially viable,” they said.

The social media post went on to list a number of economic factors that plagued the popular distillery and bar in recent years.

“The decision to cease operations is a result of a confluence of factors that have made it increasingly challenging for Paradise Rum to remain solvent,” they said.

“Escalating energy costs, increased costs of goods, excise taxes and a sharp downturn in consumer spending, has undoubtedly impacted our revenue streams.

“Despite our best efforts to weather the storm, including the recent launch of Paradise Rum Bar in Mooloolaba, it has become evident that the ongoing challenges and financial constraints are insurmountable.”

Hundreds of comments poured in following the announcement, with some describing the news as “devastating” while others reminisced on the venue’s popular bingo and trivia nights.

Originally published as Paradise Rum companies enter liquidation as million-dollar debt revealed