Falalalah, a popular Italian restaurant located on Melbourne Street in South Brisbane, has allegedly entered into voluntary liquidation.
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The restaurant, which has been in operation for eight years, is reported to owe over $200,000 to creditors, primarily the tax office.
Falalalah was known for its unique Korean-Italian fusion cuisine, with dishes like bulgogi pizza and bulgogi risotto. It first opened its doors in 2015 and quickly became a favourite in the South Brisbane dining scene.
However, business took a downturn last year, leading to a temporary closure in June. The restaurant later reopened under new ownership but allegedly continued to struggle.
The appointed liquidator for the Italian restaurant stated that he was informed of a transfer of ownership or possible sale of the business prior to his assignment. He reported that over $200,000 is owed to a range of creditors, with the majority being taxes owed to the tax office.
The liquidator is now responsible for liquidating any remaining assets of the company and distributing proceeds to pay off outstanding debts.
A Members’ Voluntary Liquidation is the process by which a solvent company ceases operations and wraps up its affairs by distributing remaining assets to shareholders. The winding up itself is typically overseen by a licensed liquidator, usually a chartered accountant from an accounting service.
When a business settles its accounts, any assets are commonly sold openly for cash or cash equivalents. Those overseeing the conclusion of affairs have the legal authority to act on behalf of the company to finalise debts and outstanding payments.
Appointed liquidators have the power to sell remaining assets and finish terminating the business on behalf of the shareholders.
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Meanwhile, a second Falalalah location remains open at Westfield Mount Gravatt under separate ownership.
Published 15-February-2024