Terella Brewing has announced it is set to close next month, ending a prolonged legal battle with Sunshine Coast Council over planning and land-use approvals at its North Arm site.
The paddock-based brewery confirmed the decision in a statement shared to social media, saying it could no longer continue operating under the financial and legal pressures it had faced in recent years.
“Today we’re sharing the news we never wanted to write – we have made the decision to close our doors,” management said just hours earlier.
The business, which began as a small brewery on rural land, expanded over time to host large events, outdoor markets and family-focused activities, including animal encounters.
What started as “a brewery in the paddock,” the owners said, became far more: “a community. A real community hub. A gathering place. Ours. Yours”.
However, council compliance officers raised concerns that aspects of the operation exceeded its original development approvals.
Sunshine Coast Council issued an enforcement notice in May last year stating that the current use of the land was unlawful without the required development permits. The notice directed the business to cease certain activities, including public events and associated operations, unless appropriate approvals were obtained.
Terella subsequently launched an appeal in the Planning and Environment Court, arguing the enforcement notice lacked clarity and disputing council’s interpretation of the site’s approved use. The brewery also faced proceedings in the Maroochydore Magistrates Court relating to alleged breaches of the Planning Act.
Council maintained it was required to enforce planning regulations consistently and that businesses must operate within approved land-use conditions.
In their statement, Terella management said the extended dispute had left the business unable to continue.
“For years we have fought to keep the doors open,” the statement read.
“We have sat in meetings, answered demands, spent money we didn’t have, defended ourselves in courtrooms, and tried over and over to find a way forward.
“After years of back and forth, sleepless nights, drained savings, relentless pressure and multiple court battles … the council has finally broken us. Financially. Emotionally. Practically.”
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The brewery confirmed it would remain open until March 15 while existing stock was sold.
“Over the next three weeks we need to sell every drop of beer in our tanks and fridges,” management said.
“If Terella has ever meant something to you – even once – we’d love to see you back here one more time.”
The closure would affect staff, with the owners describing them as “the heart of this place” and encouraging other businesses to consider employing members of their team. Terella also confirmed it was working to rehome rescue animals kept on the property and would settle all outstanding invoices.
“To all our valued suppliers we assure you all invoices owing will be paid – we will not leave other small businesses unpaid – that is not who we are.”
The announcement prompted a strong response online, with more than 1,000 reactions and hundreds of comments within an hour of posting on social media.
Among them, Zowie Dawson wrote: “This is an absolute loss to our family community! We are so sorry that you’ve had to endure all this pressure as a small business. We have on so many occasions enjoyed our time there especially with your animals and space! It is so hard to find a place where adults can enjoy themselves just as much as children can! Our hearts break for the loss of a true Sunshine Coast icon!”
Food vendor Yassou Greek Street Food commented: “We literally have tears writing this. We are completely lost for words. The most heart breaking news. We love you guys. We love the community you have built. We love the brewery you have built. Everything came from your heart and soul. You all should be so incredibly proud. We feel beyond privileged to cook with you all this Saturday and we will forever cherish all of our memories with you guys.”
Ely McCarthy added: “Absolutely gutted to read this guys. Having lived a stone’s throw away from the very beginning it’s been such a bloody amazing thing to watch what you’ve grown into. This is unfair in every single way. I’m so sorry it had to come to this. What a loss for the coast.”
Terella Brewing is the second hospitality venue to announce its closure in a matter of days, with Solbar issuing a statement on Tuesday.
