Hugo’s Lounge, a popular hangout and high-profile King’s Cross stalwart has announced plans to close as early as next week after being placed into voluntary administration.

The closing comes after a significant decline in revenue (owner Dave Evans stated as high as 60%), since the tightening of area specific alcohol restrictions from 2012. Further hits levied from 2014 lockout legislation put the company into a cost-saving state, reducing trading hours and cutting its almost 200 staff members down to the current 70.

In an interview with Sydney Morning Herald, Evans firmly targets the government for mishandling legislation and singling-out King’s Cross to such a point that the area became unable to compete with unaffected suburbs. He further asserts that for the legislation to be truly successful it should be enforced everywhere, or not at all.

“We said it would destroy business, we said it would destroy staff and here we are,” he continued, “Hugo’s had no trouble with alcohol, which as it turns out is more than Barry O’Farrell can say.”

Since the implementation of area lock out laws in February 2014, King’s Cross venues have largely been faced with revenue loss, and at least 12 have been sold or shut down.

The venue’s usually expressive fan base has yet to comment on the closure through social media, however a level of outcry is expected.

The group’s Manly venue and other holdings will remain unaffected.