Sydney’s Joe’s Warehouse and Smooth Herman’s nightclub have shut their doors.

Staff was given the news Sunday night.

“The problem just boiled down to the economy,” said the Sydney restaurant’s co-founder Joe Salter, adding Smooth Herman’s was especially hard-hit by a slumping economy.

Joe’s Warehouse and Smooth Herman’s are owned by Salter’s daughter Sara Figliomeni, who took over the businesses in 2005. Figliomeni also owns Sara’s Simply Delicious Bakery, located below Joe’s Warehouse.