The business behind Newcastle city centre cocktail bar and restaurant Okana went into liquidation owing more than £1.4m to creditors - including more than £24,000 to former staff, new documents reveal.
Cyclone (Newcastle) Limited ran the bar in the old Union Rooms building until it closed amidst the pandemic with the loss of 33 jobs. Documents from liquidators at North East firm FRP show the loss making business owed £24,534 to staff in pay and pension contributions, though part of that sum could be covered by the firm's assets, leaving £15,614 still owed.
Cyclone, which was owned by businessman Kevin Pattison, also owed hundreds of thousands to lenders, the council, HMRC and local suppliers. A statement of affairs report filed at Companies House reveals the business owed £225,572 to the tax man, and other major creditors included finance business Asset Advantage, which it owed £117,595 and Newcastle City Council, which it owed £115,688.
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Other smaller amounts of £23,529 were owed to major drinks supplier Molson Coors, and £32,575 to brewers Marstons. Durham-based real estate firm URN Management Limited was left without £212,644. Elsewhere, North Shields' firm PWS Building and Joinery Ltd was left £12,000 out of pocket, while restaurant bookings platform Quandoo was owed £11,575.
Okana is linked to another failed Newcastle food and drink business Lorenzo North East Ltd, which ran the Casa San Lorenzo restaurant on Gosforth High Street until it was bought by out of administration by new owners, saving 15 jobs.
Kevin Pattison was a director of both Cyclone (Newcastle) Limited and Lorenzo North East Ltd. The latter went into administration owing £1.5m to creditors. Within the liquidators' statement of affairs for Cyclone Mr Pattison is listed as a creditor, owed £231,941, while Cyclone minority shareholder Susan Walker, was owed £199,977.
Mr Pattison was approached for comment.
