03/05/2019 - 12:50

Liquidation battle for Mad Dogs

03/05/2019 - 12:50

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Liquidators have been appointed to Mad Dogs Jungle Bar five months after the Milligan Street venue shut its doors following a dispute with the landlord, but it is anticipated the decision may be reversed.

Liquidation battle for Mad Dogs
Mad Dogs was on the corner of Milligan Street and Hay Street. Photo: Supplied

Liquidators have been appointed to Mad Dogs Jungle Bar five months after the Milligan Street venue shut its doors following a dispute with the landlord, but it is anticipated the decision may be reversed.

The bar was set up in 2016, on the corner of Hay Street and Milligan on the site that had been Howlings Bar and before that, Nine Marys Restaurant.

The team behind the business included Ben Tua, who also owned Dominion League, and Jasveer Jessy of Akru Jessy Capital.

Hall Chadwick WA partner Cameron Shaw was appointed liquidator by the Supreme Court this week, after a wind up application by Canning Vale-based Pezzano Enterprises.

Pezzano supplies fruit and vegetables to restaurants and hotels.

Drinks on tap. Photo: Supplied

Business News understands Mad Dogs will be seeking to overturn the winding up order, claiming the company did not receive proper notification of the application.

The liquidation is the latest in a string of hospitality businesses going under in Perth in recent years, including Cyril Mason’s in Northbridge, Ku De Ta in East Perth, and the Terrace Hotel on St George’s Terrace.

This one has a complicated backstory.

The bar was locked out of its premises by the land owner, Stephanie Grewal, in July 2018, a move that was later overturned by a State Administrative Tribunal judge, Mad Dogs says.

A second, final lock out took place in November.

According to a November Facebook post by Mad Dogs, the dispute was over outgoings.

“The landlord agreed to settle in the form of discounted rent by almost $10,000 per month and fixed outgoings for the remaining two years on our lease within 20 mins of the first mediation,” the post said.

“After agreeing on all the terms the landlord decided that (the owner) no longer wished to negotiate or settle and backed out of the deal.”

Hearings continued, and a settlement was reached, but the business said legal fees, lost revenue and stock damage cost $150,000 in that time.

All of that led to the bar announcing it would close.

Business News understands that in the lease, outgoings were paid on an estimate in advance, and overpayments were to be credited.

The reconciliation was to take place at the end of each year.

Inside the Mad Dogs Jungle Bar. Photo: Supplied

The Grewal family had been involved in its own dispute, however.

That was with the strata of the building, 16 Milligan Street, with calculation of the split up of outgoings one issue.

It was eventually resolved by agreement between parties, Business News understands.

Mad Dogs’ battle with Ms Grewal continued, however, and was due for a State Administrative Tribunal hearing within weeks.

Solomon Brothers litigation partner Chris Williams was acting for Stephanie Grewal and said Mad Dogs’ tribunal claims were without merit and would be defended.

“Insofar as the State Administrative Tribunal proceedings are concerned, the position of Stephanie Grewal is that the lease was terminated due to default on Mad Dog’s part,” Mr Williams said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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