All three of The Hi-Fi Bar venues have been placed into external administration.
The Hi-Fi Group has been operating entertainment venues in Melbourne, Sydney and Brisbane since the first (Melbourne) opened in 1997.
In a statement, the Hi-Fi group said its "dispute with a major creditor 'could not be resolved'. The creditor as a result put the business into voluntary administration. However, it's business as usual in all three venues."
The Sydney Morning Herald reported that Administrator Simon Nelson, from Melbourne accounting firm Romanis Cant, said he would oversee operations at all three music venues while a buyer was sought. Mr Nelson was appointed by one of the Hi-Fi's creditors, he said.
"All three venues will continue to trade under my control with the support of key employees, industry stakeholders, landlords and other stakeholders," he said. "We expect to achieve a sale of the business as a going concern in the next four weeks."
Mr Nelson said he hoped music fans would not be affected by the Hi-Fi's woes, but he could make no guarantees. "I can't guarantee there will be a sale, but I'm highly confident," he said. "If not, it will be closed down."
