Almost 50 staff at two popular Subiaco nightspots are facing an uncertain future after liquor authorities suspended their licence to operate.
WA Police lodged a complaint with the Liquor Commission last month under Section 95 of the Liquor Control Act against the licensees of the Gold Bar and Club Red Sea, which operate under the same licence and at the same Rokeby Road property.
The police asked the commission to take disciplinary action against the licensee for breaching licence conditions - but neither police nor the commission would elaborate on the nature of the complaint.
On Thursday, director of liquor licensing Barry Sargeant issued a Section 91 order, which suspends the venues' licence. The order means the Gold Bar and Red Sea cannot trade until the suspension is lifted.
"This is a very serious situation for the licensee of the venues which employs 40 part-time staff and seven full-time staff," a spokeswoman for the licensee said.
"For the majority of staff, their position at the nightclubs represents their only source of income.
"The nightclub owners will have to assess which staff may need to be laid off."
The spokeswoman also said the owners were trying to notify patrons of the situation. Functions, including an Australia Day event, birthday parties, hens' nights and charity events - have been cancelled.
Gold Bar bar manager Caleb Bloomer works up to four shifts a week at the venue to support himself as he studies commerce at the University of WA.
He said staff and patrons had been aware of the complaint since last month and had been signing a petition to keep the nightspot open.
"It's come as a bit of a blow to me because, financially, I am trying to support myself and not many places are looking for workers at this time of the year," Mr Bloomer said.
"We haven't heard about what will happen with pay and, until this is resolved, I'm not sure if I will be able to support myself and pay the rent."
The Racing, Gaming and Liquor website shows the licensees are Winter Holdings (WA) Pty Ltd, White Dee Pty Ltd and Red Cee Pty Ltd.
Business searches show Victoria Winter, the wife of former Olympic boxer Adam Forsyth, is the director and secretary of Winter Holdings, while nightclub entrepreneur Jon Sainken is the director of White Dee, and John and Gary Masel are the directors of Red Cee.