A struggling Brighton cabaret has been repossessed by another nightclub operator after failing to pay the rent.
The Haus of Cabaret venue in St George’s Road, previously known as the Hanbury Ballrooms, is now up for sale or rent.
Notices were pinned on the door Haus of Cabaret in St George’s Road on Monday saying the building and contents are now owned by a subsidiary of Tokyo Industries, a Manchester-based nightclub and festival company.
And because Proud Galleries Brighton Ltd, which runs the venue, had failed to pay rent, Tokyo Industries is taking the building back.
The business is one of many owned by controversial Hove-born entrepreneur Alex Proud, who also once ran Stanmer House. Another of his companies, West End Galleries, has been ordered to pay thousands of pounds in unpaid wages to four employees by employment tribunals in the last few weeks.
A spokesman for Tokyo Industries said: “Tokyo Industries took security over the property at 83 Georges Road in Brighton last summer following a defaulted debt relating to Alex Proud’s London businesses.
“Following further defaults later last year to Barclays PLC and ourselves, we were pressured to purchase the property to resolve the Barclays default.
“This moved Proud Galleries Brighton Ltd to a lease position which has also now defaulted on its rent.
“There are only so many chances you can give one person. We took the property back on Monday.
“The property for the moment is closed while we look for alternative interest in leasing or purchasing the property.
“Any parties interested in the property should contact info@tokyoindustries.com.
“Any person having purchased tickets for upcoming events should contact the ticket outlet or their credit card provider for a refund.”
Tokyo Industries is owned by Aaron Mellor. The notice posted on the door said the building and contents are now the property of another company, 83 St Georges (Brighton), which was set up in September last year as a subsidiary of Toyko Industries.
Both Mellor and Proud were founder members of the Night Time Industries Association, set up in 2017 to push back against increasing red tape from local authorities.
In 2020, the company Alex Proud set up to run Stanmer House went bust owing £287,000.
Mr Proud blamed this on a rent increase by the leaseholder, KSD Group, which now runs the venue.
It’s unusual for a property owner to be so lenient. It’s just sad that Proud are serial takers of the P.
I hope there are some established Brighton clubs that can take it over and keep it’s character.
Bar Broadway II maybe?
Unfortunately the overheads of this place make it unappealing as a going concern. This is despite the wonderful character and colourful history of the venue which is now in a sorry state of repair. I hope it survives the latest crisis.