Chapel Street nightlife group enters voluntary administration

Liam Bellamy and John Kukulovski of Mackay Goodwin have been appointed voluntary administrators of a cluster of Melbourne hospitality entities operating under the Good Company Bar Group umbrella, including the La La Land and Electric Ladyland venues, as mounting tax liabilities and unsecured debts pushed the group into formal insolvency in December.

The appointments, made on 17 December 2025, cover Lala City Pty Ltd (formerly trading as La La Land), Electric Ladyland Vic Pty Ltd, Circus Vic Pty Ltd, Holy Grail (VIC) Pty Ltd, Lala Chapel Pty Ltd (formerly trading as La La Land Windsor), and YWHDB Pty Ltd (formerly trading as Somewhere Bar). The companies operate several high profile nightlife venues concentrated around Chapel Street and the Melbourne CBD.

According to material circulated to creditors, all six venues have continued trading since the administrators’ appointment, with staff retained and wages, superannuation, and employee entitlements reported as current at the time of the first meetings. The administrators have indicated that trading on is intended to preserve enterprise value while restructuring options are assessed.

Preliminary investigations point to substantial statutory arrears as a central driver of the appointments. The administrators estimate that tax liabilities across the group are approximately $1 million for the 2025 financial year, with the figure expected to increase once outstanding BAS, income tax returns, and payroll tax reconciliations are completed. Both the Australian Taxation Office and the State Revenue Office feature prominently among creditors.

Based on the companies’ books and records, unsecured creditor exposure is estimated at more than $4 million in aggregate. The group also has multiple secured creditors, alongside what the administrators describe as significant outstanding employee entitlements that are still being finalised. Further clarity is expected once investigations into intercompany arrangements, related-party transactions, and historical trading performance are completed.

The directors have flagged their intention to put forward a proposal to creditors aimed at keeping the venues operating, raising the prospect of a deed of company arrangement or similar restructuring outcome. The administrators have not yet expressed a view on the viability of any proposal and have indicated that recommendations will be set out in their forthcoming report to creditors.