The Gold Coast’s landmark Courthouse Hotel sale has collapsed with staff awaiting their fate

STAFF at Southport’s landmark Courthouse Hotel are waiting to hear their fate after the sale of the business collapsed suddenly.

The Court House Hotel which is shut until further notice, Southport, Gold Coast.

STAFF at Southport’s landmark Courthouse Hotel are waiting to hear their fate after the sale of the business collapsed suddenly.

The Nerang Street establishment had been due to change hands last month after the Anthony Moreton Group which planned to redevelop the site as a residential tower along with an upgrade of the hotel, signed up for the property before Christmas.

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The deal failed to settle by the deadline last Thursday night and yesterday, part-owner Hans Torv said he was astonished.

The Court House Hotel is shut until further notice.

“To default on a contract in the final hours, not show up at settlement and leave staff in limbo is something we wouldn’t do,” he said.

“This has been the most protracted and tedious process our group of companies have ever been involved in.”

Mr Torv yesterday said the situation would force the closure of the Courthouse Hotel in the short term.

“We will need to close the doors for a bit as we now have to restructure our closing of all service that we were required to do in anticipation of the settlement,” he said.

“All supply contracts in our name were terminated, so it’s hard to immediately restart trading.

“Try to buy 10 kegs of beer without a personal guarantee in place.”

Mr Torv promised to look after staff who were at risk of losing their jobs.

“I will cover the staff needed as we go forward, as they shouldn’t suffer as a result of the buyers default,” he said.

“They are good people and deserve respect.”

Courthouse part-owner Hans Torv.

AMG funds management managing director and company co-founder Paul Gude yesterday said the decision to withdraw from the purchase had been taken “reluctantly”

“The Courthouse Hotel was identified as an attractive potential redevelopment site under the new Southport Priority Development Area, with the opportunity to produce a residential tower complimented by an upgrade of the existing hotel,” he said.

“The upgrade of the hotel was proposed to include an extension of the existing trading hours, which would have in turn resulted in improved amenity for the area and increased employment opportunities for the current staff, as well as for any additional requirements.

“AMG’s vision for the site was considered to be in line with the GCCC’s intent under the new PDA, that being the reinvigoration of the Southport precinct, with significant work undertaken with various consultants behind the scenes to fully test the viability of the proposed strategy.

“Unfortunately, despite the appropriate formal negotiations being undertaken between the parties, we were unable to agree revised terms with the vendor to conclude the transaction.”

Mr Torv said legal action against the Anthony Moreton Group was on the cards.

“I’m taking advice on that and we certainly have contractual rights we can look at enforcing,” he said.

Mr Gude said AMG was still interested in buying further properties on the Coast.

“AMG continues to be a firm believer in the Gold Coast market, especially in the exciting lead-up to the 2018 Commonwealth Games and is committed to further investment in the area if suitable transactions are identified,” he said.

Property experts estimated the Courthouse Hotel deal would have been worth about $8 million.