Wellington restaurant Duke Carvell's has been put into liquidation by its owner after a decline in turnover.

The restaurant, in Swan Lane, off Cuba St, was formerly owned by the Bresolin brothers, who sold it last year.

It was rebranded as Duke Carvell's Pan-European Restaurant, which was put into liquidation on March 11.

MAARTEN HOLL/ FAIRFAX NZ Leonardo and Lorenzo Bresolin sold Duke Carvell's to Michael Taylor Cole in July last year.

According to the Companies Office, Michael Taylor Cole is the sole director and shareholder of the restaurant.

Jessica Kellow and Iain Bruce Shephard​ of Shephard Dunphy were appointed liquidators by a special resolution signed by the shareholder.

Their first report says the director/shareholder bought the "successful" business in July 2015. "Unfortunately in the months that have followed the purchase, the turnover has declined. Despite attempts to cut staff costs and increase sales, the cashflow has not recovered sufficiently to enable the business to continue to trade."

Leonardo Bresolin​ said it was sad to see the restaurant closed.

"At the end of the day, this is hospitality and it all comes down to the operator. It's not an easy business ..."

The Bresolin brothers are behind other popular eateries in the city, including The Bresolin, Scpoa and Tommy Millions.

Restaurant Association national president and Wellington restaurateur Mike Egan said he understood Cole was a newcomer to the industry.

It would have taken a lot of "X-Factor" to keep on top of a successful brand such as Duke Carvell's, he said.

The restaurant industry had seen a lot of fluctuation, with businesses having an average lifespan of 24 months before closing, or changing hands.

Everyone thought restaurateurs were millionaires, but it was a business with low profit margins of only 3 or 4 per cent, Egan said. "If it was easy, everyone would be doing it."

Hospitality New Zealand Wellington regional manager Dylan Firth said the liquidation was out of character for the area.

"Cuba St seems to be growing, and there is not a high turnover of businesses."

Restaurants in the area were usually busy, he said.

San Fran bar owner Tim Ward said business was "trucking" on Cuba St. "It's all good if you're doing the right thing and looking after people."

Hospitality Association Wellington president Jeremy Smith said that, in some cases, high rents and low turnovers had forced some people in the industry to go into liquidation.

More competition in an area, and the trend for drinking and eating at home, had not helped.

"The hospitality industry is under constant pressure to maintain volumes … it is up to the operator to invest wisely and create a point of difference for their business."

According to the liquidator's first report, Duke Carvell's Pan-European Restaurant ceased trading on March 9. It will be offered for sale by the liquidators.

Fixed assets had a book value of $120,128 but, due to commercial sensitivity, the liquidators would not say how much they expected to receive. A formal stocktake has not been undertaken.

There were 13 secured creditors, which included Kiwibank, owed $301,707, and Swan Lane Ltd (a business in which the Bresolins are shareholders), estimated to be owed $191,666. IRD was owed $25,598.

Preferential creditors included employees, who were owed $43,000, and unsecured creditors included trade creditors, owed $60,000.