Collapse of Adelaide pub the King’s Head leaves dozens of local suppliers out of pocket
The demise of historic Adelaide pub the King’s Head has left dozens of local beer, wine and food suppliers out of pocket. See what they’re owed.
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Dozens of local beer, wine and food suppliers have been left out of pocket following the collapse of the historic King’s Head pub in the CBD.
A report prepared by liquidator Daniel Lopresti, of Clifton Hall, reveals 173 unsecured creditors are owed more than $800,000.
The state’s biggest brewer, Coopers, is owed more than $12,000, while craft brewers including Pirate Life, Mismatch Brewing, Little Bang Brewing, Big Shed Brewing and Uraidla Brewery are owed smaller amounts.
Local wineries including Alpha Box & Dice, Rusden Wines, Hewitson and Shobbrook Wines are also set to lose thousands of dollars.
The King’s Head, which opened on King William St in 1876, prided itself on serving only South Australian beer, wine and food produce.
Liquidators were called in last week due to the severe trading restrictions put in place to limit the spread of the coronavirus.
The pub’s debts to the ATO had risen to more than $230,000, while publican Gareth Lewis, his family members and other shareholders in the business have submitted claims for more than $380,000.
Assets including equipment and furniture will be sold by the liquidators, but according to estimates provided by Mr Lewis, they are only likely to recover around $55,000.
Mr Lewis told The Advertiser a “myriad of factors”, including the depressed state of the local economy pre-coronavirus and inadequate government relief measures, were brought to a head when pubs were forced to close their doors last month.
He fears other pubs will suffer a similar fate to the venue he ran for close to 12 years.
“I believe the most dangerous time for hospitality will be in the 6-18 months post restrictions being lifted,” he said.
“Dealing with greatly increased business and personal debt, potentially repaying back-rent, in a climate where it will be as difficult as ever to put bums on seats.
“The government-backed loan scheme does not go far enough to allow pubs to access funds fast enough. All tiers of government need to realise how fragile the hospitality industry is and pull their weight.”
Mr Lewis – a director of local festival, music event and bar operator General Admission Entertainment – is currently running for the Adelaide City Council’s central ward seat, left vacant following the resignation of former deputy lord mayor Houssam Abiad.
He has been a vocal critic of the council’s response to the coronavirus shutdown, and is calling for council rates in the current quarter to be waived for all hospitality and non-supermarket retail businesses in the city.
“This program should be rolled out proactively by the staff already working in the administration, and all ratepayers should be contacted directly by the council, not via an application process,” he said.
The King’s Head was once owned by the Vaughton family and son Brian was in iconic Adelaide band The Masters Apprentices, which played there regularly and had international success.
Three full-time staff are affected by the pub’s failure, while a number of casual staff had already been stood down due to the coronavirus shutdown.