The owners of the upmarket Green Point nightclub, ZAR Lounge, face a high court liquidation application, it was reported on Tuesday.
The Cape Times reported that the legal action centred around a rent dispute with the owners of ZAR's premises in Cape Town, the Cape Royale Luxury Hotel and Residence.
The owners of the ZAR lounge are "Sushi King" Kenny Kunene and fellow ex-convict Gayton McKenzie.
Cape Royale was reportedly taking Gayton McKenzie (Pty) Ltd (trading as ZAR) to the Western Cape High Court to place it under provisional liquidation.
The hotel claimed it was owed more than R450,000 in rent, levies, and electricity charges.
According to The Cape Times, it claimed in an affidavit that the outstanding charges had been due since August and had not been paid despite promises to do so.
McKenzie told the newspaper he and Kunene were opposing the application.
They had taken a stand not to pay the rent until they had been compensated for costs they incurred in their efforts to get a liquor licence.
He said when they signed the lease, they had been "fooled" by the hotel into thinking the premises had a liquor licence.
The matter is expected to be heard on April 10.
- Sapa