Sydney hotspot Hugo's Lounge closing down; revenue declines due to lockout laws
Hugo’s Lounge in Kings Cross, one of Sydney’s most high profile nightclubs, is set to close next week after it was placed into voluntary administration on Wednesday, following a 60 percent decline in revenue turnover.
The bar, which has been a popular hangout for the city's well-heeled for 15 years , witnessed its business collapsing after the government introduced lockout laws in February last year, which specifically applies to licensed premises in Kings cross and the CBD.
According to the Sydney Morning Herald , owner Dave Evans said that Hugo’s, which is under the administration of HLB Mann Judd, will be trading this weekend before shutting down next week unless a buyer is found. He said that the revenue decline, which started with the alcohol restrictions, had since cut trading hours, and blamed the government for imposing such anti-competitive regulations.
Mr Evans and other operators argued that lockout laws should be equally applicable everywhere and not just to specific bars. It has been reported that the company lost 100 of its employees since 2012 and the remaining 70 will also lose their jobs after the venue closes.
However, since lockout measures were brought in to stop alcohol related offences following the deaths of Thomas Kelly and Daniel Christie, research found that assaults in the city and Kings cross were considerably reduced, although it is to be noted that in the same period the number of offences also fell across NSW. At the same time, the Sydney Morning Herald reports that although lockout measures have worked, "crime statistics also showed alcohol-related assaults on licensed premises more than doubled in Pyrmont over the 12 months to March, and climbed 60 per cent in Newtown."
Researchers recorded a massive drop in the number of people visiting Hugo’s Lounge after the introduction of the lockout laws, which in turn brought down the business to their knees. Chief executive of the Kings Cross Liquor Accord Doug Grand said the decision to close down Hugo’s was shocking and predicted further decline in the area’s popularity. "The area itself is a ghost town from what it used to be," he said.
Similarly, Hugo’s licensee Adam Hart and his colleagues expressed concerns about the rising unemployment of the industry. He too blamed the government for the incident.
Around a dozen nearby pubs in Kings Cross have already closed this year, such as Soho, the Backroom and Trademark.
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