The company behind Newcastle venue 48 Watt Street has gone into liquidation and been removed from the premises after four years of "inconsistent" rent payments, a property advisor told the Newcastle Herald on Monday.
48 Watt Street is a business registered under the ABN of Wellsman PTY LTD, which includes The Well Bar and Nice Try Music & Events Co.
Australian Security & Investments Commission (ASIC) lists Jessica Coleman as director of Wellsman PTY LTD.
The Newcastle Herald understands Ms Coleman manages the business of 48 Watt Street with Jonathan Coleman, who ASIC listed as a co-director of Wellsman PTY LTD until March 2020.
The business has operated within the property at the address which bears the same name as the business since November 2017.
Managing director of Endeavour Property Advisors Andrew Gibbons has been representing the owners of the property for about four weeks regarding the sale of the property.
The ownership of the property is unrelated to the business.
Mr Gibbons told the Herald Wellsman PTY LTD was notified verbally on July 5 of its inability to continue trading in the property and again in writing on July 8.
Mr Gibbons said the owners took possession of the property on the morning of Monday July 17. The Herald understands the operator of the business was placed into liquidation on the same morning.
"The owner took possession of the property for non-performance under the lease today," Mr Gibbons said on Monday. "We addressed issues of arrears with the [owner of the business] to see if there was a way to rectify those."
Mr Gibbons said the tenant had been inconsistent in paying rent on time since within the first year of their lease and had made "minor payments over various periods of time".
"There were some rental issues before Covid-19 and Covid-19 exacerbated that," he told the Herald.
The owners allowed Wellsman PTY LTD to operate the business at 48 Watt Street rent-free from February 2020 to March 2021, in what Mr Gibbons described as a "gift".
This period was before temporary legislation, Retail and Other Commercial Leases (COVID-19) Regulation 2022, which minimised business expenses during the pandemic.
A spokesperson for the business 48 Watt Street said in a public forum in in April 2023 that the business had lost around $500,000 during the "total period of Supercars".
"That is accommodation of loss of potential trade plus direct losses while trying to trade through the weekend of the event," he said.
Mr Gibbons said the property's owners are "ready to move on" after holding the property for some time and have other investment strategies they wish to pursue.
On Monday morning, the Google Maps marker for 48 Watt Street read as "permanently closed", as well as co-owned business The Well Bar.
The 48 Watt Street Facebook page had been removed at 2pm on Monday but the business' Instagram page and website remained live. Tickets to upcoming events were still able to be purchased online.
The Herald is seeking comment from owners of Wellsman PTY LTD.
"The owners of the property have nothing to do with the business and have been very generous considering significant rental arrears accumulated over a four year period," Mr Gibbons said.
Mr Gibbons said he was informed of the company's liquidation on Monday morning.
The Herald is seeking comment from the liquidator and NSW Fair Trading.
