Orpheus owner Don Cliburn has closed the restaurant after being caught serving alcohol when his liquor licence had expired.

Two glasses of wine, a bottle of beer and a mail mix-up have been blamed for a Wellington restaurateur losing his business.

Don Cliburn​ has shut the doors on Orpheus Restaurant, in Allen St, after he was caught serving alcohol while waiting for a new liquor licence to be approved.

Cliburn blamed a mail mix-up for allowing the old licence to expire, and said he chose to keep serving out of desperation to keep his business afloat.

KEVIN STENT/STUFF Chattels were removed from the restaurant on Monday.

However, on the first day after his licence expired, a council inspector came in and discovered the breach.

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Police and Wellington City Council have since decided to oppose any new licence. As a result, Cliburn said he had no option but to close permanently because he could not afford the pay rent, or his 12 staff, in the meantime.

"It cost thousands and thousands and thousands of dollars every month to run a place like this. We are shattered now. We are done."

He regretted the decision to serve alcohol without a licence, but believed the council should change its reminder system, and grant temporary licences during periods of renewal.

A Wellington City Council spokesman said several reminders had been sent to Orpheus' registered address, and Cliburn was warned three times by licensing inspectors that he could not sell alcohol once his licence expired.

"Despite this, he was caught selling liquor.

"Managers of licensed premises are supposed to keep an eye on the renewal date for their licences, in much the same way as a car owner is responsible for keeping a WoF or rego up to date," he said.

"In the case of the Orpheus, the council sent the manager three reminder notices but they were sent to the business address held on our records."

The council was not informed of the change of ownership, or business address, which "in itself is a breach of the licence", the spokesman said.

Orpheus' licence came up for renewal in August. However, reminders from the council were sent to an old address of Cliburn's former business partner.

The first he knew of it was when the council called him the day his licence expired, he said. He immediately applied for a new one.

However, he had to refrain from selling alcohol, which accounted for 70 per cent of his business, until the new one was approved. He was told the process could take up to seven weeks.

"We are a semi-fine dining restaurant. We can't operate without selling spirits, wine and beer.

"They said, 'Well, you should have done due diligence and looked at your licence.' I said, 'Well, yes, maybe I should have, but at the same time, maybe you guys could help us out a little bit'. They said they'd process it as fast as possible."

In the meantime, Cliburn decided to keep offering alcohol.

"I was told by several people, 'Look Don, you've had four liquor licences here, and you've never had a issue, you've never had police calls, and it's not like you have 15-year-old drunks in here having orgies in the back corner, so just carry on, nobody is going to check on you.'

"Stupidly, I listened to that advice … and I sold two glasses of wine and a beer and a council inspector came in and caught us.

"At that time, we made the decision to close the restaurant."

On Monday, Cliburn was removing chattels from the premises. He was not sure what he would do for work now.

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