Iconic Block Arcade business Hopetoun Tea Rooms for sale
The spectacular cake displays of the famous Hopetoun Tea Rooms could be no more, with the popular Block Arcade eatery put up for sale after a long-running feud with the landlord.
Leader
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The CBD’s iconic Hopetoun Tea Rooms has been put up for sale.
Administrators of the renowned Block Arcade venue, SV Partners, are seeking expressions of interest for the purchase of the business and its assets.
The popular eatery has been a fixture of Collins St since 1892 but it has not been open since March 19 due to the coronavirus shutdown.
It was placed into voluntary administration earlier this month following a legal dispute with the landlord of the Block Arcade.
The tea rooms have become famous for their spectacular cake window display and the never-ending queues of people waiting to get inside, the property advertisement said.
The future of the business had been in doubt since VCAT ruled in October that owners Kelly and Kon Koutoumanos must pay the landlord $1.5 million over a failed expansion of the business.
The legal row was over the Koutoumanoses plan to set up a new 200-seat eatery in the Block Arcade basement, while keeping the original tea rooms.
Ms Koutoumanos told the Herald Sun earlier this month she was trying to do everything she could to bring it back to what it was.
But it seems an agreement could not be reached with the Block Arcade managing director Grant Cohen.
The Block Arcade landlord said he hoped the sale could help take the popular venue to the “next level”.
Mr Cohen said the tea rooms were one of two businesses that captured the true essence of Melbourne – the other being Pellegrini’s.
Mr Cohen said the tea rooms has had many owners in its 128 year history and would have many more in generations to come.
“Hopefully we find the right person with the right experience to take on the beautiful tradition that it is,” he told the Herald Sun.
“It’s not just another business, it’s a business where people line up for 45 minutes just to get a seat – it’s an institution.
“We would welcome the successful purchase and hopefully it’s someone who has the vision to take it to the next level.”
Mr Cohen said the Hopetoun Tea Rooms was a long and proud tradition that dates back to the first tenancy of the Block.
“When you come to Melbourne you have to tick it off the bucket list,” he said.
Mr Koutoumanos said he wished new owners well: “All the best to the new owners, time always tells the truth.”
Expressions of interest should be registered with SV Partners by 5pm on June 3.
The administrators have been contacted for comment.
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