
Sydney's iconic Emperor's Garden cream puff shop was repossessed after the ATO sought to wind up the company. The closure and a A$44.5m redevelopment of the site now face a court hearing Friday.
Sydney's Emperor's Garden restaurant and bakery has closed its Haymarket doors after the Australian Taxation Office applied to wind up the company. The shop, famous for its 70-cent cream puffs, now bears signage noting the premises "has been lawfully re-entered and possession taken" as of Sunday.
The closure comes ahead of a Federal Court hearing Friday on the ATO wind-up application. Emperor's Garden Pty Ltd faces a winding-up petition filed by the Deputy Commissioner of Taxation in early July. The ATO typically takes such action when a company has not paid debts or arranged a payment plan.
Emperor's Garden told customers in a social media post that the restaurant and bakery are "taking a short break" and that "the Puffs are deflating for now." The business declined further comment. Mills Oakley, the law firm listed on the repossession notice, also declined to comment.
The restaurant has been a Sydney Chinatown fixture since Stanley Yee opened it in 1979. Its yum cha and takeaway cream puffs drew long queues. A separate Emperor's Garden barbecue noodle site on Thomas Street remains open.
The Hay Street site is at the centre of a A$44.5 million redevelopment approved by the City of Sydney in May. The plan, proposed by Hynsco Pty Ltd, calls for internal refurbishments and a 22-apartment residential tower that would raise the building from three storeys to 16. A council document said existing food and drink premises within the building "will continue to trade post-construction."
Property records show the building is partly owned by Hynsco and by M & S Yee, the partnership behind Emperor's Garden. Hynsco is run by Lance and Elaine Lai. M & S Yee refers to Stanley Yee and May Ho Yee, directors of Emperor's Garden Pty Ltd. Stanley Yee's son Valentine did not respond to a request for comment. Lance Lai also did not respond.
The ATO wind-up application and the repossession add an element of uncertainty to the redevelopment schedule. The hearing is set for Friday.
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