Five factors behind collapse of millionaire’s row eatery
A well-regarded Asian restaurant in the millionaire's enclave of Sanctuary Cove has gone under owing a six-figure sum to creditors including the tax man.
Established in 2012, Thai House Sanctuary Cove, which specialised in duck pancakes, grilled fish and green curry, owes creditors about $154,000 including almost $100,000 to the Australian Tax Office and $19,000 to its landlord.
Jason Bettles, of insolvency firm Worrells, said the restaurant's director Nicholas Tansacha put its failure down to the COVID-19 pandemic, trading losses, lack of accurate financial information, inadequate financial management and excessive use of credit facilities. Mr Tansacha, 32, was not available for comment.
The restaurant had offered a takeaway service during the coronavirus shutdown but had been unable to survive. Thai House was situated in the well-heeled dining precinct of Sanctuary Cove where water front homes sell for as much as $6 million.
The Australian Bureau of Statistics said last month that 80 per cent of restaurants and hotels had reported a slump in revenue due to the coronavirus shutdown.
Worrell's Mr Bettles said Thai House would not be the only restaurant to fall over in the coming months as the pandemic took its toll on consumer confidence.
"I think there are a few out there, but they are in a hiatus with the JobKeeper program supporting them," said Mr Bettles. "I have spoken to some of them who say they just can't see themselves reopening their doors. Margins were already thin."
Australian Small Business and Family Enterprise Ombudsman Kate Carnell on Tuesday predicted a 'tsunami' of insolvencies to come.
"Sadly, many small businesses have been driven to the brink by factors outside of their control, such as the COVID crisis," Ms Carnell says.
"The reality is that Australia is now in the grip of a recession. Trading conditions are the worst we've seen since the Great Depression and many small businesses won't survive.
A $5000 voucher for struggling businesses owners to access financial support is among a suite of reforms announced by a federal inquiry to overhaul the nation's 'traumatic' insolvency sector.
Originally published as Five factors behind collapse of millionaire's row eatery