Perth restaurateur Steve Scaffidi's Bar One is facing creditor claims of more than $400,000, mostly from its St Georges Terrace landlord and the tax office, after the collapse of the inner-city venue.
Creditors at a meeting in Perth yesterday were told a decline in the market and increased competition were partly to blame for the closure of the restaurant and bar, which shut its doors unexpectedly last month.
Liquidators WA Insolvency Solutions were appointed to Mr Scaffidi's company Arthurian Investments Pty Ltd, which trades under the name QV1 Bar One, three weeks ago.
_The West Australian _understands Mr Scaffidi attempted to sell the business last year and had two offers, which fell through because of conditions associated with the lease.
Mr Scaffidi, who also established former Subiaco landmark restaurant Alto's, is the sole shareholder and director of Bar One but he is not personally liable for its debts. Mr Scaffidi did not respond to requests for comment yesterday and did not attend the creditors' meeting.
It is understood Mr Scaffidi's other CBD venue, Sentinel Bar and Grill, is not affected.
The dining landscape in the inner city has changed dramatically since Bar One opened 12 years ago, with a flood of entrants into the market, prompting warnings from industry figures not all venues would survive.
However, as recently as February Mr Scaffidi appeared upbeat, telling _The West Australian _ the influx of restaurants on the Terrace had helped make the city "a destination".
It is understood Bar One creditors, comprising the landlord, the tax office and trade creditors, are owed about $430,000.
Bankwest is the only secured creditor, meaning it would be first to receive any proceeds from the sale of assets.
WA Insolvency Solutions said yesterday a dividend to un- secured creditors was unlikely.