Queensland Government owed hundreds of thousands after NightQuarter collapse

The company behind the collapsed Sunshine Coast music venue NightQuarter received more than $600,000 in state government grants and loans in the two years before it went bust.

The Nightquarter on the Sunshine Coast closed in November 2022. Picture: Letea Cavander

The company behind the collapsed Sunshine Coast music venue NightQuarter received $630,000 in Queensland Government COVID-19 related grants and loans in the two years between its opening and collapse, documents reveal.

Included in that figure is an $80,000 Covid-19 grant in May 2021 and an additional $300,000 Covid-19 grant in September 2021, announced by Arts Minister Leeanne Enoch, as well as a $250,000 COVID Jobs Support Loan in 2020 from the Queensland Rural and Industry Development Authority (QRIDA).

Food Focus Australia Pty Ltd, the parent company of NightQuarter, went into administration with insolvency firm SV Partners appointed as administrator on November 28, 2022 and NightQuarter shutting its doors the same day.

The directors of Food Focus Australia Pty Ltd, Ian Van der Woude and Michelle Christoe, previously stated they felt targeted by the government, specifically Queensland Health, after the venue was raided and shut down in 2021.

Ms Christoe said they were grateful for the grants but there was “a clear disjoint between the actions of Queensland Health and Queensland Arts”.

“We appreciate the need to keep the community safe but still feel that the live music sector was unfairly targeted with strict measures when compared to sporting events,” she said.

Ms Christoe said they had to cancel over $3.5 million in live music events over the two years of the Covid-19 pandemic.

“The grants enabled us to sustain the business,” she said.

“The use of the money was controlled by strict guidelines that we complied with.”

Ms Christoe said poor attendance numbers post-Covid also had a dramatic impact and the business couldn’t recover from its losses.

NightQuarter owners Ian Van der Woude and Michelle Christoe said they were unfairly targeted by Queensland Health. Picture: Lachie Millard

QRIDA was listed as one of 21 secured creditors in Australian Securities and Investments Commission (ASIC) documents, who could all be owed up to $4.2m.

The documents show Food Focus Australia Pty Ltd could also owe about $3.2m to unsecured creditors and $300,000 in unpaid super and leave entitlements to staff.

NightQuarter debts claimed by creditors, staff revealed in liquidator SV Partners’ report

Acting Treasurer Grace Grace said the Queensland Government would make no apology for saving jobs during the Covid-19 pandemic through their loan program.

“To date only a very small proportion of recipients might have ceased to operate since then have gone into administration or liquidation, and the vast majority continue to operate and provide good jobs for Queenslanders,” she said.

NightQuarter had previously opened in the Gold Coast, before closing and moving to Birtinya.

Ms Grace would not respond to questions about how the Queensland Government was hoping to recoup the $250,000 loaned to Food Focus Australia Pty Ltd but said COVID Jobs Support Loans were designed to be repaid over a 10-year term.

Mr Van der Woude and Ms Christoe opened a newly renovated historic North Brisbane pub late last year, with ASIC documents showing they became directors of Sandgate Taphouse Pty Ltd on April 21, 2022.

A spokesman for SV Partners said there would be an expression of interest campaign for the sale of NightQuarter, for the intellectual property and tenancy, and the Malt Shovel Taphouse Sunshine Coast, also owned by Food Focus Australia Pty Ltd, would go up for sale.

Originally published as Queensland Government owed hundreds of thousands after NightQuarter collapse