Scarborough Beach restaurant La Capannina has refused to give up its fight against a northern suburbs council after it was forced into closure earlier this week.
City of Stirling opted to terminate the venue’s lease, citing water damage that posed a “significant structural risk” to neighbouring businesses, with owner Karri Li discovering she had been locked out of the premises after Monday’s public holiday.
The Italian restaurant sits at the top floor of Stirling Leisure’s Scarborough Beach Pool facility, above Zoie Cafe.
Ms Li believes said she had undertaken the appropriate works in recent months to remedy a water ingress issue as per the council’s requests, and that she is entitled to a final inspection confirming as such.
However, City of Stirling claims Ms Li had been made aware of water penetrating a concrete slab at her venue since December 2024 and had ample time to act accordingly.
On Saturday, Ms Li provided an update to PerthNow, suggesting she had proposed the council appoints an “independent expert” to assess the site.
“We have already identified and fixed the source of the water issue, and extensive works have been completed. There is currently no sign of ongoing water ingress,” Ms Li said.
“We have repeatedly invited the City to inspect the premises, but no further inspection has taken place. To move forward fairly, we have proposed appointing an independent expert to assess the site. We believe this is the most reasonable and transparent way to resolve the situation.”
The owner, who has been part of La Cappanina’s journey since it opened in 2018, said she hoped to reach a fair outcome with the council.
With up to 40 staff on her off-peak roster, she hoped they would stay close in the chance the restaurant could re-open.
“During this time, we are continuing to support our team and keep everyone together, because we believe in reopening and moving forward,” she added.
“Our goal remains simple — a fair outcome and the opportunity to reopen. We remain open to resolving this constructively, but will take any further practical and legal steps necessary to seek a fair outcome.”
In a statement on Wednesday, City of Stirling Mayor Mark Irwin said that after several tests and inspections since late 2024, “the tenant has repeatedly failed to comply with the notices, leaving the City with little choice but to terminate the lease”.
Mr Iwin added: “We have conducted tests and inspections in that period and issued multiple notices, from Improvement Notices in February and October 2025 to a Breach Notice in March 2026. Unfortunately, the tenant has repeatedly failed to comply with the notices, leaving the City with little choice but to terminate the lease.”
“We are passionate about supporting small businesses and local jobs, and terminating a lease is a last resort, but the water penetration issue now represents a significant structural risk.
“We plan to start the works required to rectify the issue as soon as possible.”
La Capannina had initially shared news of its closure on Tuesday, and encouraged the community to sign a petition to “stop unfair lease termination” by the council.
It had garnered more than 2300 signatures by Saturday afternoon, less than a week after being launched online.
Those behind La Capannina feel it is part of the community’s fabric, impacting local customers, staff, and suppliers.
