Wellington bars Rubix and SugarWoods in liquidation as local economy bites

The site of SugarWoods bar on Courtenay Place, Wellington. Photo / Google Maps

Two Wellington City bars are in liquidation, with declining foot traffic along Courtenay Place cited as one factor.

SugarWoods Limited, which operated Rubix Bar and SugarWoods Bar, was placed into liquidation on August 13 at the request of shareholders Jose Ubiago and Rachel Clark.

Iain Shephard and Jessica Kellow of BDO Wellington were appointed liquidators.

Ubiaga is also the sole director of SugarWoods, according to Companies Register records.

The liquidator’s report said SugarWoods was unable to create sufficient revenue to meet its obligations. Declining foot traffic along Courtenay Place and the general economic downturn were cited as reasons for insufficient company revenue.

The report said considerable expenditure was required to set the businesses up with fixtures and fittings. The company then faced issues with obtaining a liquor licence for one of its bars due to the conduct of the bar that previously operated from the same site.

SugarWoods bar was situated where The Establishment bar used to be before Ubiaga bought it from Andrew Gibson.

The Establishment was once said to be one of the highest-risk licensed premises in the city, according to authorities reviewing a liquor licence renewal in 2021 - which was ultimately denied. That application had been made by the previous owner, Gibson.

A statement of financial affairs for SugarWoods prepared by the liquidators showed creditor claims totalled more than $830,000, including more than $49,000 to Inland Revenue.

The bulk of the liabilities consisted of a related party loan of $373,272 and shareholder loans of $383,921.

The Companies Register shows Ubiaga is also the director of Rhinestone Cowboy Limited, a registered company that has a pub operation and is one of two directors in Thirsty Whale - Wellington Limited, which operates a licensed bar.

No money is shown as being owed to staff.

The liquidators said it was unknown what was owed to trade creditors at this stage.

Creditors include ACC, Asahi Beverage (NZ), Coca-Cola New Zealand, Genesis Energy, JNL Painters, Orange Door Music, Southern Hospitality and Wellington Plumbing.

The company has assets including plant and equipment, valued at $205,325, and furniture and fittings, valued at $388,254.

It was too early to estimate what funds might be available for preferential and unsecured creditors, the liquidators said.

It’s been a tough year for the restaurant and bar sector trading amid an economic downturn, with some notable high-profile closures.

In February, popular downtown Auckland entertainment venues Everybody’s and Roxy went into liquidation with its owner owing more than $1.3m to staff, creditors and the IRD.

Another popular Auckland drinking hole, Chapel Bar & Bistro, went into receivership after it failed to pay back a loan to its co-owner worth hundreds of thousands of dollars. Chapel Bar & Bistro has since found a buyer.

A slew of restaurants have closed their doors too, notably SPQR, Homeland, Madame George, and Pilkingtons Restaurant and Bar.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.