Bar closed owing more than £200k
A BAR that blamed its closure on rising business rates had debts of more than £200,000 before shutting its doors.
The owner of popular Cardiff bar and restaurant 29 Park Place has described growing business rates as the “straw that broke the camel’s back” - leaving the company owing thousands to Cardiff council.
In a notice of statement of affairs dated October 19, 2017, provided by Companies House, the venue under the name Croesy Bars Ltd lists a total debt of £277,231.13.
This includes the £24,610.39 owed to Cardiff council in business rates and hundreds of pounds owed to food suppliers.
A spokeswoman for Cardiff council said: “At the time the business closed the outstanding business rates would have been £41,650 – that would be the rate charge up to March 31, 2018.
“So the outstanding rate liability was apportioned to October 29, 2017 and the amount outstanding is £24,610.39.”
Announcing the bar’s closure on social media, Croesy Bars director Jon Saunders said he had tried to create a success after opening the venue more than two years ago and that there was “no choice” but to close.
A statement on the company’s Facebook page from Mr Saunders reads: “It is with a heavy heart that I can confirm the imminent closing of 29 Park Place.
“We had high hopes of making it a longstanding success when we set up over two years ago but due to the pressure of rising business rates in the city centre, we have no choice but to make this difficult decision.”
Speaking about Croesy Bars Ltd’s outstanding debt to Cardiff council, Mr Saunders added: “Business rates doubled or near enough trebled from what they were to what they are now. It was the straw that broke the camel’s back.”
Cardiff council said the setting of business rates was a matter for the Welsh Government.
A Welsh Government spokesperson said: “We are committed to supporting businesses in Wales and provide more than £200m every year to help businesses pay their rates bills.
“More than three-quarters of small businesses receive help with their bills and half pay no business rates at all.”
Croesy Bars Ltd appointed Neil Maddocks of South West & Wales Business Recovery as a voluntary liquidator on November 29 last year.
The Companies House document also reveals that Croesy Bars Ltd received a loan from the Development Bank of Wales in 2015.
The statement of affairs from October lists a debt of £163,553.11 to Finance Wales Investment Ltd in a “fixed and floating charge”.
Reporting in 2015, Business News Wales said a £200,000 loan would be used to complete a refurbishment of the Park Place building.
Mr Saunders said discussions were “ongoing” with the Development Bank of Wales to discuss the repayment of the loan.
On November 29 last year, Cardiff cocktail bar The Dead Canary also appointed a voluntary liquidator under the company name Croesy Bars Two Ltd.
The company, which lists Mr Saunders as a director, named Mr Maddocks as its liquidator.
Mr Saunders said he was unable to comment on Croesy Bars Two Ltd and said discussions regarding that venue remained ongoing.