It is known as one of Sydney's most popular and high-profile bars but Kings Cross venue Hugos Lounge is set to close its doors after it was placed on voluntary administration on Wednesday.
As Fairfax reports, the trendy nightspot which has been around for 15 years, has suffered a 60 percent decline in revenue, largely due to the controversial lockout laws introduced in February last year.
Hugos owner Dave Evans confirmed that administrators HLB Mann Judd would keep the venue trading over this weekend, but will close next week unless a potential buyer could be found.
Evans slammed the state government for the singling out Kings Cross with "anti-competitive regulations".
"We said it would destroy business, we said it would destroy staff. And here we are," Evans said.
Interestingly, as the club faces closure, Hugos had never received a strike against it under the government's 'three strike' liquor licensing regime when it was introduced.
"Hugos had no trouble with alcohol, which as it turns out is more than Barry O'Farrell can say."
Hugos licensee Adam Hart said he and his staff would face unemployment in the industry which is already rapidly declining.
"The government doesn't really want these businesses to exist," Hart said.
The news comes just days after Erskineville hotspot The Spice Cellar announced that it would be shutting down, also due to the lockout laws.
Meanwhile, The Imperial Hotel, which has been given two bans in a span of five weeks for reported drug busts and openly intoxicated patrons and staff, has been given two weeks to fight a long-term closure.
