The bar's lengthy liquor licence renewal application process was scheduled to continue yesterday when the sale announcement was made.
Ongoing problems at the bar, including an inability to retain trained staff and adhere to licensing rules, had already hampered The Break's owner, Diogo D'Souza of Dash Away Ltd, the hearing was told.
At yesterday's District Licensing Committee hearing in Dunedin's Municipal Chambers, Mr D'Souza and his wife, Shibina, announced they were now selling, following legal advice suggesting they had little chance of getting a liquor licence.
That meant pulling out of their licence application and instead requesting a 90-day temporary authority to run the venue as a bar while it was on the market.
They had organised two new duty managers to run the venue during that period.
That request received little support at yesterday's committee meeting, with Dunedin police alcohol harm prevention officer Sergeant Ian Paulin, medical officer of health Dr Marion Poore, and licensing inspector Tony Mole all suggesting the temporary authority be declined.
Sgt Paulin told the committee of an alleged intimidation incident in July involving Mr D'Souza turning up to a then-duty manager's flat with a ''large-set male with tattoos on his face''.
A female flatmate answered the door and was asked about the duty manager's whereabouts.
''They were quite confrontational,'' Sgt Paulin said.
After the front door to the flat was closed, Mr D'Souza and his companion banged on it for several minutes, before yelling out from the street for several more minutes.
A nearby shop owner and another returning flatmate who saw the incident feared for their safety, Sgt Paulin said.
He told the committee a complaint was laid on August 10, which police followed up, arresting Mr D'Souza last week.
''I think that just reinforces, sir, that there is no place in the industry for this applicant. To take matters into his own hands, obviously using an enforcer to back him up in that situation, is totally inappropriate.
''In [the] five years I've done this job, I've never seen an applicant who was more unsuitable to be in the industry.''
The committee should consider why the owners had gone through so many duty managers in a short time and, with that in mind, should consider whether it was likely the new duty managers put forward yesterday would stay in those roles for the three-month period now being applied for.
''Something obviously goes on behind the scenes that we are not privy to.''
When questioned about the incident, Mrs D'Souza said the couple had been trying to collect an important piece of documentation from the duty manager, but had struggled as the man did not have a phone.
They had gone to see the man's girlfriend at her workplace and she suggested going to his flat, giving them an address.
On the way, her husband had bumped into a man on the street her husband knew was the duty manager's friend, Mrs D'Souza said.
That man, who Mr D'Souza later found out was a Mongrel Mob member who had served time in jail, offered to help him find the duty manager's flat.
Mrs D'Souza said there had been no attempt at intimidation.
''I don't think my husband can intimidate anybody. He doesn't have that sort of aggro attitude.''
The fact the complaint had come three weeks after the incident, but just one day after the duty manager left his employment at The Break, was the pertinent point, Mrs D'Souza said.
''That was just done to put us in trouble. I don't know what else to say.''
When questioned by committee member Wayne Idour, Mr D'Souza said he had no idea at the time of the incident that his companion that day had Mongrel Mob connections, or a history of jail time.
But that assertion did not impress Mr Idour.
''Mr D'Souza, I'm sorry I don't believe you. I have no further questions.''
Mrs D'Souza also said the high turnover of duty managers had come through a combination of unfortunate circumstances and bad advice.
''It's not a matter of us not looking after them. It's not our fault that the duty managers we have employed are choosing to leave. It's not something bad that we are doing behind the scenes.''
Mr and Mrs D'Souza told the ODT yesterday they had been instructed not to talk to the media.
A decision on the bar's 90-day temporary authority is expected to be made public today.
