Beloved Sydney Chinatown institution Emperor's Garden has shut up shop amid legal action from the Australian Taxation Office, but the restaurant insists it is not all bad news for devotees of its iconic yum cha and takeaway cream puffs.
The popular Haymarket restaurant and bakery has been shuttered with signage noting the premises "has been lawfully re-entered and possession taken" as of Sunday.
The sign — covering 98-100 Hay Street — directs employees to their employer, customers to the restaurant's owners and people who need to recover property to law firm Mills Oakley.
The cream puffs are on pause. (ABC News: Liam Patrick)
Emperor's Garden declined to comment to the ABC, but in a social media post on Monday said: "Our restaurant and bakery are taking a short break. That also means the Puffs are deflating for now.
"We'll be back soon."
They have been sold for 70 cents each. (ABC News: Millie Roberts)
Mills Oakley, which said it acted for one of the owners of the site, also declined to comment.
Shock closure comes amid redevelopment
There used to be a line of people leading to Emperor's Cream Puff in Chinatown. (ABC News: Liam Patrick)
Emperor's Garden Restaurant has been feeding Sydneysiders since it was opened by Stanley Yee in 1979.
Its takeaway cream puffs, sold from a window for just 70 cents each, have long attracted huge queues of customers looking for a piping hot treat.
The shock closure comes after the Deputy Commissioner of Taxation applied to wind up Emperor's Garden Pty Ltd in early July, with a hearing scheduled in the Federal Court on Friday.
The Emperor's Garden Restaurant pictured in Haymarket in 1987. (Supplied: City of Sydney)
According to the Australian Taxation Office (ATO) website, the enforcement action is taken when a company has failed to pay its debts or it has not been able to negotiate a suitable payment plan.
The City of Sydney council has approved a $44.5 million redevelopment on the site that would allow for internal refurbishments and the construction of a 22-apartment residential tower, taking the premises from three storeys to 16.
"The site is being developed by the long-standing owner-occupiers of the site, who indicate existing food and drink premises within the building will continue to trade post-construction (The Emperors Garden Restaurant and Bakery)," one document said.
Customers have been left confused by the sudden closure. (ABC News: Liam Patrick)
The redevelopment was approved by the council's local planning panel in May subject to a series of conditions, including a detailed environmental site investigation and an amended waste management plan. It has been proposed by Hynsco Pty Ltd.
However, potentially complicating matters, the Deputy Commissioner of Taxation has since applied to wind up Emperor's Garden Pty Ltd with a hearing set down for Friday.
It is not clear what the building's possession and Australian Taxation Office action mean for the redevelopment.
Property records show part of the building is owned by both Hynsco Pty Ltd and M & S Yee while the rest is owned only by Hynsco.
ASIC records show Hynsco is run by Lance and Elaine Lai while M & S Yee refers to Emperor's Garden Pty Ltd directors Stanley and May Ho Yee.
The City of Sydney council approved a $44.5 million redevelopment on the site. (ABC News: Liam Patrick)
Mr Yee's son, Valentine Yee, did not respond to request for comment. Nor did Mr Lai, who is reportedly Mr Yee's nephew.
Emperor's Garden's barbecue noodle site on Thomas Street is still open.
It is not the first matter to rock the Emperor's Garden.
Valentine Yee and brother Jonathan were implicated in a 2022 Independent Commission Against Corruption investigation into Chinese Friends of Labor.
