Sushi Bay collapses after restaurant chain’s last store in Darwin went into liquidation

A much-loved Australian sushi restaurant chain has gone bust, with its final store now shut for good.

Sushi Bay collapsed last month owing millions of dollars as all of its restaurants in NSW and the ACT went into liquidation or were ordered to close in recent months following a Fair Work investigation.

Its final store in Darwin was ordered into liquidation on Monday.

The chain’s demise comes after the Deputy Commissioner of Taxation recently began winding up proceedings against the Sushi Bay network.

Christopher Palmer of insolvency firm O’Brien Palmer was recently appointed as the liquidator of Sushi Bay, Sushi Bay ACT and Auskobay.

Sushi Bay’s main company based in Campbelltown owed about $1.5 million in tax payments, $155,000 to trade creditors and had $250,000 in other debts, according to Mr Palmer.

He recently told media outlets that some creditors may be repaid as there was still cash in the bank.

Sushi Bay still states on its website that the company is hiring. 

Founded in 2004, Sushi Bay had almost a dozen stores across Sydney in its heyday, as well as outlets on the NSW central, north and south coasts.

The chain also expanded to Canberra and Darwin, which was the last shopfront standing until this week. 

Sushi Bay was a popular restaurant chain before the Deputy Commissioner of Taxation began winding up proceedings earlier this year

In March 2022, the Fair Work Ombudsman commenced legal action against the operators of Sushi Bay outlets and its owner and sole director Yi Jeong ‘Rebecca’ Shin for allegedly underpaying workers more than $650,000 during a four year period between 2016-2020.

The regulator alleged the companies underpaid 163 workers – mostly Korean nationals on student, working holiday and 457 skilled worker visas.

‘It is also alleged that some workers were subjected to a cashback arrangement and that records were falsified,’ Fair Work stated.

‘Many of the allegedly underpaid employees were young workers aged under 25. They generally worked as cooks, kitchen attendants and in customer service roles.’

Most of the underpayments were related to overtime with flat cash rates of between $14 and $17 an hour for overtime, despite workers being entitled to rates of between $25.94 and $48.24 an hour for overtime work.

‘It is alleged that minimum wage rates, weekend and public holiday penalty rates and annual leave entitlements were also underpaid and that the companies knowingly made, kept or used false or misleading records,’ Fair Work stated.

The restaurant chain was popular with sushi fans across NSW, as well as in Canberra and Darwin (stock image)

The chain’s Miranda, Wollongong and Merrylands stores registered under Auskobay Pty Ltd, went into liquidation in February.

Its main branch in Campbelltown followed suit in March, along with restaurants in Carlingford, Shellharbour, Castle Hill and Canberra.

More stores closed in April which left Darwin the last one remaining open until this week. 

Daily Mail Australia has contacted Sushi Bay for comment.