Rocky CBD cafe sued for $250K rent after sudden closure
A ROCKHAMPTON company is suing the owners of former CBD cafe and bar Chango Chango for more than $250,000 after the business closed unexpectedly in July.
Mystery has surrounded the closure, with people reporting on social media they arrived for breakfast on the morning of July 13 to find the business shut and the venue stripped of furniture.
Now the owner of the Bolsover St building where the business operated is suing the business and those involved over early termination of the lease.
Documents lodged in the District Court of Rockhampton on behalf of CB Grand Pty Ltd, which owns Suncorp House on Bolsover St, state Chango Chango Pty Ltd entered into a five-year lease in October 2014.
This lease was guaranteed by two other people, who are also named in the court claim.
The lease covered monthly rent, the tenant's percentage of the outgoings for the premises and relevant utility charges.
In November 2016, the business was sold and CB Grand agreed to assign the lease to new owners Andler's Pty Ltd, with a clause that Chango Chango Pty Ltd remained liable under the original lease.
On July 14, CB Grand served a notice on Andler's regarding non-payment of the lease up to that date.
The lease was terminated on August 1.
In breaching the lease, the documents allege Andler's failed to pay the $26,642.85 for the period up to July 14.
The documents state CB Grand was owed a total of $229,260.78 for the remaining three years of the lease, plus GST.
The lease also included $18,256.62 in outgoings for the same period.
Between February 20, 2017, and July 6, Andler's made various payments totalling $32,463.72.
In mid-March, CB Grand used a $13,961.95 security deposit from Andler's to pay part of the outstanding debt, a second deposit of $8432.55 was also used for the debt on July 15.
CB Grand is claiming damages totalling $255,655.33 from Chango Chango Pty Ltd, Andler's Pty Ltd and the owner of Andler's.
The company is also seeking $80,663.09 from two other people who guaranteed the lease.
The Morning Bulletin has attempted to contact all parties named in the documents and it's understood no defence has been filed.