LGCA pulls nightclub liquor licence

A Winnipeg nightclub’s liquor licence has been cancelled for repeated violations in a 13-month span — the sixth punishment of its kind since Manitoba’s current regulator was set up in 2014.

Obsidian Ultra Lounge was over-capacity or had over-served alcohol to customers during a series of unannounced inspections since New Year’s Eve in 2022, according to the Liquor, Gaming and Cannabis Authority of Manitoba.

“The LGCA has cancelled other licences, but this is the first time a licence has been cancelled for repeated breaches,” spokeswoman Lisa Hansen wrote in an email. “The LGCA’s executive director can issue an order to immediately cancel a licence where a breach creates risk to the safety of patrons and staff in a premises that is licensed by the LGCA.”

Obsidian Ultra Lounge’s age-restricted liquor service licence was revoked after inspectors showed up Feb. 4 and deemed it to be over-capacity again.

The Pembina Highway bar will appeal the cancellation before a panel of LGCA board members Wednesday.

The basement club has been temporarily closed, according to its Instagram page, which touts theme nights and free drink promotions to young adults.

The regulator said the bar continued to breach provincial liquor licensing regulations, despite fines, suspensions and compliance training for staff.

The first of seven compliance orders stemmed from a routine inspection Dec. 31, 2022, when the bar was above its 150-person capacity and had over-served alcohol by volume and quantity, the LGCA said.

Those violations happened less than two months after the LGCA held an education session for staff.

Obsidian Ultra Lounge’s appeal of a two-day licence suspension was dismissed by an LGCA panel, which was told the bar served more than 85.2 millilitres of spirits to one customer at one time, and customers were in possession of more than two drinks each.

Inspectors saw a table of six people with a tray of 19 vodka shots, according to a report on the panel’s decision. Some of those customers had additional drinks.

After counting as many as 181 customers, the inspectors told the manager to bring the number of revellers to within capacity.

“The LGCA deems breaches caused by overcapacity as threats to life safety and/or social responsibility,” then-board chair Peter Fuchs wrote in the report.

At the hearing, Qizheng (Leon) Yang, president of a numbered company that operates as Obsidian Ultra Lounge, said the tray of shots left unattended by staff was intended for 15 people seated between two tables, the report said.

The report said no evidence was presented to support the claim. It said the business’ record of operations listed five infractions between March 2019 and October 2022.

By the end of April 2023, Obsidian Ultra Lounge had been penalized three more times for being over-capacity or over-serving customers, resulting in fines of $2,000 and $4,000, and a four-day licence suspension.

The bar was also required to submit a plan to ensure its capacity would not be exceeded again.

The LGCA said the club was over-capacity again Oct. 28 and Nov. 16, which resulted in two six-day suspensions.

The last strike came Feb. 4, when inspectors deemed the bar to be over-capacity and the licence was revoked.

The City of Winnipeg’s website said a new occupancy permit was issued Feb. 9, which increased the capacity to 250.

In response to an interview request, Yang told the Free Press he would seek his lawyer’s advice.

In Manitoba, all staff who serve, sell or deliver liquor must pass a training program before working in a licensed establishment.

Shaun Jeffrey, executive director and CEO of the Manitoba Restaurant and Foodservices Association, said the appeal could be precedent-setting.

Obsidian is not a member of the association.

Repeated breaches are disturbing and unacceptable, said Jeffrey, noting he has never seen a case with such “compliance disregard” in his 20-plus years in the hospitality industry.

“Our industry, especially our association, we pride ourselves on educating our members to make sure you’re serving alcohol in a responsible manner,” he said. “We take this very seriously, and this is something we don’t tolerate.”

In the 2022-23 fiscal year, the LGCA issued 15 compliance orders to licensees. The regulator cancelled Chaise Corydon’s dining room licence and revoked Eden Empire Manitoba One’s retail cannabis store licence.

Jeffrey said Manitoba’s liquor licensing regulations, which are designed to protect people, are very clear. Northern Hotel owner Keith Horn agreed.

“The rules are pretty straightforward,” he said. “If you get caught once, they’re telling you exactly what you did and what you need to do to make sure it doesn’t happen again.”

In December, the LGCA ordered Horn’s Main Street bar to use a metal-detecting wand at the door, after a stabbing and shooting in separate incidents last year.

He said unannounced inspections happen about every four weeks at his bar.

When a licensing breach occurs, the LGCA typically hands out cautions, written warnings and holds meetings with management, said Hansen.

She said the regulator’s “progressive discipline model” begins with information and training. Licence cancellations are typically the final step. Fines can be up to $100,000.

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Chris Kitching
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As a general assignment reporter, Chris covers a little bit of everything for the Free Press.

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