Cafe that flouted pandemic rules took $200k from Covid-19 wage subsidy before going bust
Tuesday, 11 July 2023
A beach-side eatery fined for openly flouting pandemic rules received almost $200,000 in the Covid-19 wage subsidy and doubled the number of staff it was claiming for, before going bust.
Level One cafe and bar in New Brighton has been liquidated owing more than $200,000 - money the creditors will never see.
Owner Rebecca Tavete told the liquidator the pandemic and “difficulties revitalising once restrictions were lifted” were the reasons for it going bust.
The Christchurch cafe received $196,000 from the Government’s Covid-19 wage subsidy scheme.
It claimed funds for nine employees at the start of the pandemic and 19 in August 2021.
It was issued $16,000 worth of fines for failing to check vaccine passes and displaying vaccine pass signage in February 2022.
Its 31 unpaid creditors which include several local food and drink suppliers are owed $138,000.
They include Aroha Drinks, Cassels and Sons Brewery, Opawa School, Silver Chef Rentals, Southpaw and Two Thumbs breweries and Waipara Springs Winery.
Roughly $83,000 in Goods and Services Tax (GST) and Kiwisaver also hasn’t been paid.
The cafe’s total owed amount is $222,390, and no payments have been made to date.
All of the cafe’s assets were sold at public auction for just over $23,000, which went directly towards the liquidator’s costs.
The company - registered as Argo Beach Co-Working Limited - was incorporated in March 2018 and ceased trading in December 2022. It will be removed from the New Zealand companies register in due course.
It was fined by WorkSafe in February last year for failing to check vaccine passes of patrons during the pandemic. Inspectors visited and also found there was no vaccine pass related signage in sight.
Tavete ignored WorkSafe inspectors’ pleas to adhere to the rules and she moved the business to a “members only” system to attempt to avoid paying any fines.
It is unclear if they have been paid or are still outstanding.
The fines applied regardless of a businesses privacy status, WorkSafe previously said.
Social media posts and a sign on the door of the cafe referred to it being open to members only.
“Very soon we will be open to members only,” a post read.
Tavete - its sole director and shareholder - unsuccessfully ran for election for the Coastal-Burwood community board in October 2019, finishing fourth with 1813 votes.
She did not respond to requests for comment.
Level One was not the first Christchurch business attempting to avoid fines for Covid-19 non-compliance.
Lotus Heart vegetarian restaurant received seven infringement notices totalling $44,000 for failing to adhere to Covid-19 health and safety guidelines.
Owner Bhuvah Thurston’s unwillingness to engage with WorkSafe inspectors landed her the fines.
Thurston asked customers to sign private contracts before entering the store which refer to pledging donations and a ‘covenant of silence’.