Woolshed on Hindley, Black Bull operator investigated

Companies operated by a prominent Hindley St publican are being investigated over the sale of two venues in the lead up to their million-dollar collapse.

Liquidators are investigating the sale of the Woolshed on Hindley. Picture: Dean Martin

Companies operated by a prominent Hindley St publican are being investigated over the sale of two venues in the lead up to their million-dollar collapse.

Liquidators were called in last week to wind up the two companies - 94 Hindley Trading Pty Ltd and 58 Hindley Trading Pty Ltd - which previously ran the Woolshed on Hindley and Black Bull Hotel before their recent transfer to new ownership.

David O’Connell, who has operated a string of venues on Hindley St including the Dog and Duck and Fabric nightclubs, is listed as the sole director and majority shareholder of both companies, which owe a combined $1m to the ATO.

Liquidator Liam Bellamy from RRI Advisory said the tax debts ballooned out in the aftermath of Covid-19, but noted that he was currently investigating the transfer of the two venues to new operators.

Part of the investigations would consider whether they were sold at a fair market value.

“Investigations into that (new operator) are ongoing but our understanding is that it is related to the director,” Mr Bellamy said.

“We’ll conduct investigations to consider whether the amount paid to the (liquidated) entities is commercial, and then make an assessment for creditors should it not be commercial.”

David O'Connell, left, with former business partner John Meek. Picture: Keryn Stevens

The two venues are continuing to trade as liquidators continue their investigations.

Mr O’Connell took over the Woolshed and Black Bull two years ago after landlords cancelled leases to previous operator John Meek, a long-time friend and former business partner of Mr O’Connell’s who later placed three of his companies which ran the venues into liquidation.

Liquidator Stephen Duncan from DuncanPowell was appointed to the Black Bull, Woolshed and Ambassadors companies in July 2022.

In a report to creditors, he said all three ceased trading on the same day in June that year, when leases were terminated over unpaid rent.

In all three cases, the landlord entered a lease with a new operator six days later.

The report said the new operator of the three venues, Mr O’Connell’s 94 Hindley Trading Pty Ltd, did not buy the business or pay the collapsed companies to take it over.

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Mr O’Connell is well known on the Adelaide hospitality scene, operating several venues in the city’s west end, including steak pub Little Hunter and Fabric nightclub.

He opened another Fabric nightclub in Surfers Paradise last year.

Meanwhile the Dog and Duck - previously one of Adelaide’s most controversial nightclubs - closed its doors for the final time on January 1, with its financial troubles blamed on issues caused by the pandemic.

Mr Bellamy said many late night venues were struggling to survive in the current economic environment.

“Australia-wide we are seeing hospitality - cafes and night time venues - struggling,” he said.

“The increase in costs and changing consumer spending habits are making it difficult to manage these types of businesses.”

Mr O’Connell has been contacted for comment.