The Archer has closed its doors after failing to attract a buyer

North Adelaide pub The Archer Hotel called last drinks on Saturday night after failing to attract a buyer to take over the historic venue.

The Archer Hotel has closed its doors after failing to find a buyer. Supplied by The State Library

• Operator of The Archer Hotel goes into administration

North Adelaide pub The Archer Hotel called last drinks on Saturday night after failing to attract a buyer to take over the historic venue.

An unnamed party last month agreed to pay $360,000 to take over the hotel, but has since pulled out of the deal following the failure of previous operator Huntsman Hotel Pty Ltd.

The Archer hosted a “Drink Us Dry” closing party on Saturday night to mark its indefinite closure, after Huntsman fell into administration last month with unpaid rent and taxes of more than $300,000.

Ahead of a second creditors meeting on Wednesday, administrator Chris Powell from Duncan Powell said the company would likely be wound up, with plant and equipment sold in the coming weeks.

“We’ve been negotiating or attempting to negotiate with the landlord to offer the business for sale but it would require a significantly reduced rent given the trading of the hotel,” he said.

“The business doesn’t support the standing rent but the landlord is not prepared to move in terms of rent. We were unable to continue to trade and so we’ve ceased to trade.

“At this stage, unless we get a (deed of company arrangement) proposal, we expect the company will go into liquidation - we’re still in discussions with the landlord but it is likely that the plant and equipment will be removed or auctioned on site.”

According to Duncan Powell’s latest report to creditors, Huntsman stopped paying rent in May after earlier failing in its attempts to secure lower rent based on poor turnover figures.

Employees are owed close to $143,000 - mostly unpaid superannuation - while trade creditors are owed more than $192,000.

According to Mr Powell’s report, low turnover, a lack of working capital and high rent and wages all contributed to the failure of the business. It posted a loss of close to $333,000 in the 2017 financial year, followed by a $146,000 loss in 2018.

The report suggests administrators could potentially recover more than $300,000 in insolvent trading claims dating back to June.

Meanwhile, the property’s landlord has commenced legal action to recover more than $160,000 in unpaid rent.

Mr Powell said the dispute involved Woolworths-owned ALH Group, which had guaranteed Huntsman’s rental payments as part of their sale agreement struck in 2016.

“There have been a number of issues that have arisen over the course of the tenancy that, depending on which legal team you talk to, calls into question how extensive that guarantee will be,” Mr Powell said.

Mr Powell said The Archer would likely remain vacant for an extended period of time in the event of liquidation.

“It’s very difficult, if a hotel is stripped of plant and equipment, for it to be reopened in a short time-frame,” he said.

“It’s one thing to buy plant and equipment in situ and another to fit out a hotel from scratch.”

The directors and shareholders of Huntsman Hotel — Matthew Mitchell and Brett Viney — are also directors of Bloody Mary Group, which counts the Saracens Head hotel in the CBD and Stone’s Throw at Norwood in its portfolio of hotels and other hospitality venues.

Under plans revealed in 2016, Bloody Mary Group planned to revert The Archer’s name back to its original name - The Huntsman Hotel - as part of a $2 million-plus transformation of the heritage-listed building.