SCARBOROUGH beachfront bar and restaurant Matisse Beach Club is the latest casualty of disruptive construction works as part of the $75 million foreshore redevelopment.
The business website stated the venue would be “taking a break” over winter and returning for the spring/summer season but Stirling Times understands administrators have been called in.
The website said “heavy construction” would be taking place and The Esplanade area would not reopen until the end of September.
“From Monday July 3 there will be significant disruptions to our business with the entire closure of The Esplanade in front of Matisse as the MRA continues to redevelop the area,” the website said.
“It’s not viable for us to trade during this disruption.”
Luke Butcher from the School of Marketing at Curtin Business School said calling in administrators would most likely “spell the end” for Matisse.
“It seems they have been selling it as if they were going to be shutting down potentially just over winter but then if they have brought in administrators it has gone further than that,” Dr Butcher said.
“Generally when you hear of that happening it doesn’t bode well for the future; if they are bringing in administrators you’d think they are going to sell off the business.”
Dr Butcher said the closure of one business in the area created a “ripple effect”.
“(The area) doesn’t have any real foot traffic once those businesses shut down or start limiting (hours); it makes it difficult for others that feed off those businesses,” he said.
“You start to see that ripple effect through the rest of the businesses.”
Wild Fig cafe owner Chris Burke said he had circulated a petition urging the State Government to provide adequate compensation to businesses for losses.
Mr Burke said his business had lost about $1 million in revenue and about $400,000 in profits due to the works and he was “sick to his stomach” about the State Government’s one off compensation plan.
The Stirling Times broke the news much-loved cafe Boho Espresso was being forced to shut its doors in April because of a lack of foot traffic.
Businessman and Scarborough Beach Association (SBA) chairman Wayne Bowen said the businesses in Scarborough were being asked to “wear all the pain”.
“In the fullness of time will be many commercial winners from the Scarborough redevelopment, including State Government via land tax increases, local government via rate increases, landowners via increased property values and rental income,” he said.
“However, apart from minor offerings, the local businesses are being asked to wear all the pain; it should be equally shared.”
SBA launched its Action Plan 2017-2020 in early June, which outlines ‘quick wins’ and short term goals to revitalise Scarborough in time for summer.
City of Stirling councillors voted to hold over a confidential motion at last week’s council meeting in relation to the temporary financial relief of Scarborough businesses.
Acting Planning Minister Sue Ellery said applications for the Scarborough business disruption payments had been received by the Metropolitan Redevelopment Authority (MRA).
“It’s important to note there was no mechanism or budget for these types of payment under the previous government,” she said.
“The Minister for Planning also asked the City of Stirling to see how it can assist businesses in the area.
“The Minister asked agencies in her portfolio to liaise with landowners in the area to discuss how they can reduce the burden on local businesses during construction.”