Seven venues across Hobart suddenly shut as owners enter voluntary administration
Seven iconic venues on Hobart’s waterfront and suburbs have closed suddenly after their owners made the difficult decision to enter into voluntary administration.
Administrators Apex Advisory will seek to find a new owner for seven venues owned by Pub Banc Group and Hotel Banc Group across Hobart.
The group employs more than 80 people at some of the city’s best-known establishments, including Cargo Bar Salamanca, Jack Greene, Observatory Bar, Franklin Wharf Restaurant and Bar, Franklin Wharf Function Centre, Republic Bar and Post Street Social.
Cargo Bar posted on social media that the decision resulted in the immediate closure of all Group venues and that they would be unable to host any upcoming bookings, special events or scheduled events.
“We understand the huge impact this will have on your plans, especially for those who rely on us for milestone celebrations, weddings, and corporate gatherings,” the post said.
“Please know that this situation is completely out of our control and we are devastated to have to deliver this news to you so suddenly.”
Administrators are working to determine the process for prepaid reservations, event deposits, and event cancellations.
Apex Advisory managing director Tim Booker said the aim of voluntary administration was to preserve the value of businesses and move quickly to sale or recapitalization.
He said his goal is to reopen the venues under new ownership.
“Our aim is to protect jobs wherever possible, maximize outcomes for creditors and secure the long-term future of these venues for the Tasmanian community,” he said.
“While the emergency sales process is ongoing, the venues will not be operational any time soon.
“These are iconic venues with strong brands, exclusive locations and loyal patronage, and assets of this quality rarely come to market.
“We expect significant interest from hospitality operators and investors both in Tasmania and nationally.”
The group’s director, Ian Vaughan, told The Mercury the closures followed a long period of difficult trading conditions.
“Our venues have been enjoyed by the Hobart community and visitors for years,” he said.
“They have provided employment opportunities for local people, supported a wide network of Tasmanian suppliers and played a part in the social fabric of regions such as Salamanca and North Hobart.
“It is a deep disappointment that we have come to this point.”
Independent MP and publican Kristie Clark told ABC Hobart venues were facing cost of living pressure and customers were not spending as much discretionary spending.
“We also know that there are significant pressures on our costs from our suppliers – we continue to see costs rising, whether it be our drinks, food supplies, insurance or rents,” he said.
“Unfortunately they are all increasing and this is putting significant pressure on small businesses.”
Hospitality Tasmania CEO Steve Old said politicians were “pretty keen to trash industries by trying to get rid of Tasmanian jobs”.
“Then they want to talk about the economy, I’m tired of being honest with you,” he said.
“Politicians at local, state and federal levels really need to support Tasmanian businesses or this is what you’re going to get.”
