An Auckland karaoke bar can no longer sell alcohol after a shareholder fired its only qualified duty managers and withdrew its on-licence renewal application – midway through a district licensing committee hearing.
Simon Yip faced the Auckland district licensing committee (DLC) on Monday, on behalf of Uea Entertainment Limited, which runs the Deluxe karaoke bar in Mt Albert.
According to hearing documents, police observed alleged intoxication, unspecified security breaches, lack of consistency with visitor and manager registers and alcohol being served past its best before date during site visits.
According to the police, in August 2023, a person who went into the premises looking for his phone, was found unresponsive in the building and rushed to the hospital. He later died in hospital with the cause of death being a drug overdose, although it was unknown where the man had taken the drugs and it wasn’t clear if the person was a member of Deluxe or a guest.
Two months later, police issued an infringement after they found the bar was selling spirits in measures over 500mls. Police alleged bar staff would sell bottles of spirits to customers, then keep the bottle and decant it out in small amounts.
Several other complaints were made by members of the public, including claims of violent and disorderly behaviour, operating outside licensed hours and security not checking IDs after midnight.
Alcohol licensing officer Kathleen Handley’s report revealed there were complaints from an anonymous member of the public in August 2023, alleging under-age visitors and under-age sex at the premises.
She labelled Deluxe a "high risk" premises, and along with police, opposed the renewal application.
The hearing at Auckland’s Town Hall was to renew an on-licence which had expired on November 18, 2023. The licence, for a tavern, was still in force until a renewal application was heard.
In his opening submission, the applicant’s counsel Deep Purusram said they didn’t excuse what had happened in the past but wanted to look forward to the future.
It was the same sentiments Yip shared when he gave his evidence.
He accepted the business was not run well in the past, but they were committed to changing that with a new management and direction.
Yip said he was training the staff, despite not holding a Licence Controller Qualification (LCQ) license, relying heavily on his experience in the hospitality industry when he worked overseas.
'Colossal waste of time'
DLC chairman Gavin Campbell said Yip seemed to have very little knowledge of the Act and the business, which was important so alcohol harm did not flow into the community.
"How is it possible for us to allow somebody with no knowledge of the Act to be responsible for staff training, and be in a responsible position in the community to have the ability to supply alcohol?"
It was after that exchange that Yip asked for a short break, where he terminated his two duty managers outside. They were also at the hearing to give evidence on behalf of the applicant.
When the meeting commenced, Yip informed the committee that he had fired the duo, adding he was serious about bringing change into the establishment.
DLC member FaAfuhia Fia asked Yip if he wanted to carry on with the application, given the only two qualified duty managers he had were now fired.
Fia called it a “colossal waste of time to deal with the application now”.
Yip’s counsel clarified to the DLC that the duo had not been terminated immediately, but would be replaced once they hired their replacements.
He asked for the the hearing to be adjourned, which didn’t seem to be appreciated by Campbell.
"You had ample opportunity to prepare for this hearing and all of a sudden you realise things aren’t going your way and you would like a adjournment," Campbell said.
He denied the adjournment and told Yip the agencies had come prepared, and he would listen to their submissions.
Yip, through his counsel, told the DLC he wanted to withdraw his application, which ended the hearing.
Yip said later that Deluxe had closed for business, but he would await advice on whether the company could still operate the karaoke business without a liquor licence.
'A very messy business'
He told LDR the breaches and complaints were down to former management. He’d become a shareholder in September 2025 and wasn’t aware of the issues, including the allegations of under-age drinking and under-age sex at the premises.
“We’re not associated with what has happened,” he said. “We took on a very messy business which we think we can grow into better shape.”
Yip said he fired the managers so he could re-apply for a liquor licence and demonstrate to the licensing committee that the company was learning and could make changes.
"If we are able to run the karaoke business, we will change the style and make it more family-oriented, rather than the past, when it was drinking and karaoke rooms."
– LDR is local body journalism co-funded by RNZ and NZ On Air.
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