Booths inside Club Kong, a Hip Hop and R&B nightclub in downtown Auckland. Photo / Supplied
Booths inside Club Kong, a Hip Hop and R&B nightclub in downtown Auckland. Photo / Supplied
A downtown Auckland nightclub known for its champagne table service has succeeded in deploying a rarely used legal manoeuvre to have its liquidation order recalled after its owner claimed she was unaware the hearing was happening.
Last Friday, November 3, a security firm changed the locks of ClubKong in Galway St after it was placed into liquidation by Associate Judge Dani Gardiner in the Auckland High Court following an application by a lawyer acting for its former bouncers Trust & Loyalty Security Limited.
But it has reopened a week later after a Judge recalled an order placing the club in the control of liquidators. To celebrate reopening on Friday, the club was offering a free Vodka cocktail to everyone through the doors before midnight.
Kong owner Zhaoxia “Loretta” Zhang was not represented at the hearing. She later said she was blindsided by the proceedings and had no idea the hearing was taking place.
The lion’s share of a $28,000 security bill has been paid back by the club shortly before the hearing, but a few thousand dollars remains outstanding. Zhang alleges the security company failed to provide timesheets to substantiate the remaining sum of $3,803.63.
Liquidator Ben Francis, of Blacklock Rose Ltd, said in his experience a recall application was rare. In 13 years of liquidation practice it is the second such application he has received, he said.
In a minute delivered on Friday, Associate Judge Gardiner said the fact Kong was not represented at the hearing supports Zhang’s claim she was unaware it was taking place.
“It seems unlikely that she would elect to not appear at the hearing when she had only two weeks beforehand made a substantial payment that nearly cleared the debt,” the Judge said.
Liquidators briefly had control over Club Kong after it was placed into liquidation.
Associate Judge Gardiner said the immediate issue was not whether Kong was insolvent, as claimed by the plaintiff company, but whether there were reasonable grounds to conclude the defendant was denied the opportunity to be heard on the liquidation application.
The Judge found there were reasonable grounds and recalled the liquidation order. The case will be heard again on November 24 in the Auckland High Court.
Zhang said she was in shock last Friday after her company was placed into liquidation.
She had checked with her cleaners who said they did not remove the liquidation notice affixed to the front door and now believes the documents were removed by a passer-by.
“The main point is that the documents did not come to my attention,” she said.
“I say this because had I known of the liquidation proceeding, I would have dealt with this matter differently.
“This is consistent with the fact that a large payment of $24,779.69 was paid to the plaintiff on 13 October 2023 leaving a balance of $3,803.63. It does not make sense for me to pay such a large sum if the company was going to be liquidated the next month.”
Zhang said she was still waiting on timesheets from the security company in relation to the outstanding debt.
Responding to what the liquidator described as some initial “questions and concerns” over how the business operated, Zhang said Kong had a “proven track record of operating over a 12-year period and providing a safe environment for our patrons and staff.”
“Despite the number of hospitality outlets ceasing operations throughout the Covid period and Auckland flooding, we have tried our best to keep our obligations to key parties including the landlord, creditors and staff in trying to find a way to operate.”
Zhang also operates the nearby Little Easy pub in Fort St.
Police and the medical officer of health are again not opposing her latest liquor licence application for Kong filed in 2021, but a licensing inspector is still making inquiries, a council spokeswoman confirmed.
On its website, the club offers customers the chance to “experience the high life” with its VIP booths and table service.
“Kong is proudly the only nightclub in Auckland that offers elite table service at this level with our exclusive hosts, bringing the ultimate nightlife experience to you.”
Prices for drinks packages start at $359 for “The Vodka Curve” rising to $999 for the “Ultimate Bottles on Bottles” package.
