The directors of The Archer Hotel say they pumped more than half a million dollars into the venue before its closure

The directors of The Archer Hotel have broken their silence on the demise of one of Adelaide’s historic pubs, blaming “extraordinarily high” rent and power costs for its downfall.

The Archer Hotel interior. Picture: Tricia Watkinson

• Failed North Adelaide pub The Archer to auction off equipment
• The Archer closes its doors indefinitely after failing to attract buyer
• Operator of Archer Hotel goes into administration

The directors of The Archer Hotel have broken their silence on the demise of one of Adelaide’s historic pubs, blaming “extraordinarily high” rent and power costs for its downfall.

Brett Viney said he and fellow director Matthew Mitchell pumped more than half a million dollars into the business in the lead up to its failure last month, in a last ditch effort to keep the doors open.

However following a failed attempt to sell the business, creditors this week voted to wind up Mr Viney’s company, Huntsman Hotel, which had operated the pub since 2016.

Bloody Mary Group director Brett Viney. Photo Dave Cronin

“The directors did all they could to keep the pub alive to the point of sale,” he said.

“I think it’s a shame - perhaps it’s a sign of where Adelaide’s at with the commercial reality of what high rents are doing to this state.

“And extraordinarily high power - it’s cheaper to borrow a million dollars these days than to run power at The Archer Hotel.”

Huntsman took over the venue from hospitality group ALH in 2016. While admitting that annual rent increases since then had been limited to CPI, Mr Viney said the business deteriorated “considerably” immediately prior to Huntsman’s takeover in 2016.

With the venue turning over less than the directors had anticipated, Mr Viney said rent relief was sought, but that an agreement with the landlord was unable to be reached.

“When we bought it, with the Le Cornu site we see a seven storey Sheraton hotel go up, we see that there’s talks of light rail going through, we see obviously the development of Adelaide Oval - we get there and all of a sudden that falls apart,” he said.

Creditors voted to wind up Huntsman this week after an unnamed party pulled out of a $360,000 deal to take over the operation of the pub.

The Archer Hotel. Supplied by The State Library

The failed deal has led to the indefinite closure of the venue, leaving employees owed close to $143,000 - mostly unpaid superannuation.

“We give great concern and respect to, as number one, to employees’ obligations, but since the get go the hotel was under some duress,” Mr Viney said.

“By arranging a sale, that sale would have guaranteed the employees’ entitlements.”

Mr Viney and Mr Mitchell 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.

Despite settlement of a recent payment dispute between The Saracens and supplier AMJ Produce, Mr Viney said other venues affiliated with Bloody Mary Group remained financially secure.

“None of our suppliers are in financial difficulty and none of the other hotels are in financial difficulty - The Saracens and Stone’s Throw are very strong businesses,” he said.

In his latest report to creditors, liquidator Chris Powell from Duncan Powell said he was reviewing a $23,185 loan made to the Saracens Head from The Archer prior to its failure. However, he has since said there are “no real issues” with the loan account, which related to a “variety of transactions between the entities for stock, equipment, and expenses”.

An auction of The Archer’s plant and equipment will be held on-site on December 5.

The Archer’s landlord Joe Calabria declined to comment.