A Melbourne nightclub has apologised for "insensitive" and "inappropriate" marketing for an event called 'Corona Chinese New Year Special' which has been cancelled due to overwhelming backlash. 

As ABC reports, Melbourne promo company, Mr Chan's, was to host the party at Pawn & Co in Prahran this Friday which promised $8 Corona beers and a free face mask. 

Anthony Leong, president of the Chinese-Australia Friendship Association, slammed the event as "ignorant, racist and insensitive".

"I was surprised that somebody, anybody, could be so insensitive and ignorant in terms of profiting from this and thinking it was funny," Leong said.

"I think the timing is not just ill-conceived and insulting, it also shows a lack of knowledge, empathy and humanity."

Pawn & Co apologised in a statement issued on Wednesday evening.

"From the team at Pawn & Co, we would like to unreservedly apologise for the insensitive and inappropriate marketing that has been circulated from Mr Chan's," it reads. 

"Whilst it is an external promotional company that owns the Mr Chan's brand, we acknowledge that we should have been more active in understanding the communication being marketed and how it might be perceived.

"We will immediately look to make changes here that reflect the values of our venue, team and the broader community."

Mr Chan's also issued an apology, saying, "We recognise that a promotional post that was made last week was offensive and we unreservedly apologise for this.

"We also recognise that some of our past promotional material was inappropriate, once again we apologise for this. We are taking action and reviewing the Mr Chan's branding immediately, it is important for us to run a night that is inclusive for all."

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