Sydney Chinatown Institution Emperor's Garden Shuts Amid ATO Legal Action

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.

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."

Mills Oakley, which said it acted for one of the owners of the site, also declined to comment.

Shock closure comes amid redevelopment

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.

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.

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.

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.

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.