Debacle, the popular Lonsdale Street bar that witnessed the revival of the Braddon strip, will call last drinks on Friday for the final time after almost two decades.
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The announcement comes amid a significant downturn in the suburb, where businesses are feeling the pinch from Sydney's Covid lockdown.
The Braddon United Retailers and Traders group on Wednesday called for the ACT government to provide immediate support to local small businesses, which are being forced to close early and cut staff hours.
Elemental cafe owner Julian Fresi said the cafe normally produced up to 300 coffees a day, but in recent days it was lucky to make half that number.
"I think ever since the mask wearing, it sort of scarred the community. I think it scarred the community quite a lot. The knock-on effect's massive. It's huge," Mr Fresi said.
"It's pretty much, we may as well be the same as Sydney, do you know what I mean? I'm looking at Lonsdale Street now - you could drive down Lonsdale Street and get a park wherever you wanted."
Mr Fresi said direct support to businesses would help keep people operating and staff working. Mr Fresi has cut staff numbers and sent people home early in response to the latest downturn.
"I don't want to do the wrong thing by staff either. I don't want to send people home early, but if there's no work, there's no work. I think it's only going to get worse."
ACT Chief Minister Andrew Barr said the ACT government was not currently considering direct cash support for affected businesses, but the Commonwealth and territory government would need to consider support if the lockdowns were extended.
"If this stretches on for an extended period of time, then yes, we may need - both levels of government might need to look at this further, but not for several days. But if it became several months, then yes," Mr Barr said.
Braddon United Retailers and Traders spokesman Kel Watt said the NSW government should compensate the ACT for financial support to businesses.
"It is now clear the 50-odd selfish idiots from NSW who chose to break their state's lockdown order and come to the ACT have jeopardised the livelihoods of Canberra business owners and their staff," Mr Watt said.
Debacle owner Brad Daniel, who announced the venue's closure on Wednesday, said the Covid pandemic and changing trends in Canberra had made it difficult to keep Debacle viable.
"Debacle was the place to be in Braddon long before Lonsdale Street became the culinary strip of the city," Mr Daniel said.
"It's been an icon in Canberra for many years, and we've paved the way for a diverse dining and entertainment culture - but now it's time to move on."
The bar opened in 2003, when Lonsdale Street was still home to more mechanics and car yards than cafes and boutique shops.
Mr Daniel said all regulars and ex-staff should stop in over the next three days as the team celebrated the occasion.
"We want to pay tribute to Debacle's journey and legacy and say cheers to our great patrons and the many businesses that have supported us," he said.
"So please come down and let me thank you personally for being part of the Debacle story."
Debacle opened at a now demolished building at 30 Lonsdale Street, before moving a decade later to the new Mode 3 building at 24 Lonsdale Street in 2013.
Business owners on Lonsdale Street have previously warned the precinct had become a victim of its own success, saying that high rents drove operators away.
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