From Hard Rock to hard times: cafes collapse owing millions Too much debt: Waiter David Wilson and hostess June Dries serve customers at the cafe in 1989. Photo: Phillip Lock The Australian franchise of a world-famous restaurant chain has collapsed, leaving 200 creditors chasing more than $4 million. The Hard Rock Cafes in Sydney and Surfers Paradise were placed in voluntary receivership after staff and service providers turned on sole director and franchisee Lionel Huntly over mounting debts. When accountancy firm Cor Cordis was appointed administrator in June, the extent of the financial carnage was revealed, with more than 100 employees missing a collective $1 million in entitlements, the bulk of which is unpaid superannuation. The remaining 100 creditors have been advised it is "unlikely" they will recoup their losses. A-list appeal: Darlinghurst's Hard Rock Cafe drew stars such as Reese Witherspoon, in 1996. Photo: Ken James Cor Cordis partner Mark Hutchins confirmed the Australian Hard Rock Cafe enterprise is in the hands of a new owner, Jeff Beaumont, who has agreed to take on a "large proportion" of the staff debt. "Trying to sell a retail business in this climate is virtually impossible, so this is a positive result for employees, many of whom also kept their jobs," Mr Hutchins said, but added, "There was too much debt. Unfortunately, a whole litany of creditors have been torched in the process. The Hard Rock Cafe was the first themed restaurant chain in the world, opening its original diner, in London, in 1971. After the cafe covered its walls with rock'n'roll collectables, the tradition spread across the chain. When Sydney's Hard Rock Cafe opened its doors in Crown Street, Darlinghurst, in 1989, 900 people paid $200 each to munch on burgers, mingle with celebrities and marvel at the rock'n'roll memorabilia. World-famous: Billy Joel attends the Sydney branch of the infamous chain. Boosted by regular appearances from globetrotting A-listers, the eatery enjoyed enormous success during the next decade. After it closed in 2007, Mr Huntly and business partner David Rich bought the Australian franchise rights from the chain's US parent company. In December 2011, they relaunched the cafe at a new 500-seater location in Darling Harbour. At the grand reopening, Mr Huntly announced the brand had "staying power." "If music went out of fashion, Hard Rock would go out of fashion," he said. Music will never go out of fashion. But in the months that followed, Mr Huntly discovered the Hard Rock name was by no means a guarantee to success. The business received another setback in November last year, when Mr Rich was declared bankrupt. Administrators, from June onwards, kept the cafes operating to preserve value and broker a possible sale, but the business was on its knees. Documents lodged with the Australian Securities and Investments Commission show Mr Huntly's related companies, Hard Rock Cafe Sydney Pty Ltd and Goddings Pty Ltd, owe the Tax Office more than $453,000 and a further $1 million to parent company Hard Rock Cafe International. Unsecured trade creditors include food and beverage wholesalers, equipment suppliers, tourism agencies, fridge repairers, pest controllers and plumbers, all chasing debts from $145,000 to $50. They include Treasury Wine Estates, which is owed almost $9000, and Gold Coast-based Chicken Delight, which is owed $22,000. For legal reasons, both companies declined to comment. When administrators met creditors in August, they said the "key reason" behind the collapse was that the business had "underestimated" the capital and operating costs required to trade. New owner Mr Beaumont, meanwhile, has vowed to develop the brand and several weeks ago registered "Hard Rock Cafe Bondi" as a new company, with the view to opening a beachside diner next year. He said on Friday: "What happened before was very unfortunate, but I'm trying to make the best of a bad situation. There have been so many costs to bring the business back up to speed, but we're getting there. He added: "Three parties bid for this business. Thankfully, we were successful because we are honouring both the staff and their entitlements. From this day forward, it's about keeping the heart and soul of the brand ticking forward. A Hard Rock International spokeswoman said: "At this time, the two locations are working through an administration plan with the previous franchisee, but Hard Rock remains committed to the existing cafe locations in Australia." twitter: @eamonnduff