It has been awarded best Nightclub in Australia, as well as best bar, restaurant and small caterer – but, even with its many accolades, one of Sydney's best and safest night spots is set to call last drinks.

Hugos Lounge & Hugos Bar Pizza in Kings Cross has been a Sydney institution for 15 years, but having done what they can to keep it running, including investing millions of dollars and selling some assets, owners can do no more to keep the doors open.

Having met with the bank over the past few weeks, the venue has gone into voluntary administration, and subject to a decision by the administrators this weekend could be its last weekend of trade.

WHY: NSW LOCK OUT LAWS

Since the NSW Government introduced one-size-fits-all alcohol laws in Kings Cross in 2012, there has been an 80 per cent decrease in pedestrian foot traffic, resulting in Hugo's business being down 60 per cent.

Meanwhile 6km away in Newtown, on Australia's longest retail strip in one of the most densely populated parts of Sydney – there are increasing anecdotal reports of more rates of assault and violence.

Similar scenes are emerging at Double Bay (2km away) and Bondi (5km away), but Hugos – six times voted best nightclub in Australia, and six times voted as having the best pizza in Australia and once, in New York, the best pizza in the world – now cannot make ends meet.

DAVE EVANS, OWNER, ON FORMER PREMIER BARRY O'FARRELL 

“I didn't want to be proven right, but I have been”, said owner Dave Evans, who fronted the highly publicised We Love Kings Cross campaign in 2012.

“We always said these laws would work against the good operators as well as the bad ones, and result in people simply voting with their feet and going to other, less prepared parts of Sydney.

“And here we are.”

Despite operating a bar, night club and pizza restaurant with combined capacity for 680 people at a time – or 6,000 people a weekend, Hugos: 

• Did not have one strike against it under the Government's three strikes rule; and 
• Was never noted on the NSW Violent Venues listing under Schedule 4 of the NSW Liquor Act.

“Look it's a fun industry but I am absolutely serious when it comes to making sure that our patrons and neighbours are safe,” said Evans. 

“Hugos had no trouble with alcohol, which as it turns out is more than former Premier Barry O'Farrell can say.

“O'Farrell might have #notearsshed but yesterday our company, as the operator of one of the best and safest clubs in the country, probably has to say goodbye to 70 jobs because of his one size fits all approach.

“Let's not forget that this is on top of 100 jobs already lost in my venue over the past couple of years, and thousands more in adjoining venues.

“The real kick in the guts is that well-intentioned but ill-informed laws don't appear to be solving the problem – they are simply moving it away, while the good, safe operators can't sustain their business.

“I'm not even angry any more, I'm just sad that such horrible tragedy was followed by such ineptitude, and now mass sackings in one of the places that set the benchmark on how to provide fun, safely.”

On Wednesday 29th July HLB Mann Judd was appointed as a voluntary administrator, and will trade Hugos Lounge & Bar Pizza in Kings Cross for this coming weekend.

While BOCSAR says assault rates are down 32 per cent in the precinct, to this day it says it is unknown whether that decline is linked to less alcohol consumption, or just less people consuming it in the area. 

*“It is not yet clear whether the reduction in assault was due to a fall in alcohol consumption or a change in the number of visitors to Kings Cross and/or the Sydney CBD entertainment precincts or both.” Media Release: “Lockout” Law Evaluation, 16/4/15.

Hugos is currently investigating a class action with other operators and property owners, for financial compensation due to the loss value in their commercial properties and trading businesses.

Media contact for more information / interviews: 0438 619 987 

Editor's note: More and higher resolution photos are available on request