Melbourne venues Carlton Club, Windsor Castle find rescue buyer
Two beloved Melbourne hospitality venues, the Carlton Club and Windsor Castle, have been sold in a last-minute rescue deal after they collapsed owing hundreds of thousands to creditors and the tax office.
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Two beloved Melbourne hospitality venues have secured a rescue buyer after they collapsed owing hundreds of thousands to creditors and the tax office.
Companies housing the Carlton Club and the Windsor Castle Hotel were placed in administration late last year with Cor Cordis administrators undertaking an urgent sale process.
The Carlton Club is a multi-level restaurant, cocktail bar and nightclub located on Bourke St in Melbourne’s CBD while the Windsor Castle is a pub near Chapel St that features a dining room, beer garden and function space.
The Ganley Group – a Melbourne hospitality group known for buying and restoring heritage buildings – has bought both venues.
Administrators Rachel Burdett and Shaun Matthews of Cor Cordis said the Windsor Castle officially changed hands last month.
“The purchasers have continued to trade the business, ensuring continuity for the venue,” they said.
“All employees as at the date of settlement (excluding the director) were offered continued
employment by the purchaser on either equal or better terms.”
The administrators said the Carlton Club settlement will occur within the next few weeks.
“The contract includes provisions for employees to be offered employment as part of the settlement,” they said.
They said director Tracey Lester submitted her own proposal for a deal for creditors but that it was ultimately rejected.
Both venues continue to trade.
It has not been disclosed how much the venues were sold for, but it’s understood the Windsor Castle sale was about $3m.
Run by builder-turned-publican Liam Ganley, the Ganley Group now boasts several venues, including Irish pub Fifth Province and beer watering hole Freddie Wimpole’s, both in St Kilda, and the Bay Hotel in Mornington.
“Reimagining and restoring some of Melbourne’s oldest buildings, we strive to be unique and respectful to the building’s heritage while breathing new life into the old girls,” their website states.
The Ganley Group said the purchase of the Windsor Castle’s freehold ensured a long-term investment in both the building and the pub, guaranteeing that it remained an iconic “local” for years to come.
“We’re committed to preserving everything that makes these venues so special — timeless, welcoming venues with unbeatable beer gardens that invite long afternoons and late nights filled with friends, good conversation, and a steady flow of pints,” Mr Ganley said.
The group said it would continue to trade the Carlton Club but raised the possibility of embarking on a redevelopment in the future.
“For now, the Carlton Club will continue as is, with Ganley Group taking the time to
understand the building’s quirks, charm, and rich history,” their statement read.
“The venue’s fantastic outdoor spaces and central location in the heart of the city offer tremendous potential for future development.
“However, Ganley Group’s priority is to steady the ship, introduce new systems and procedures, and build a strong foundation before embarking on the exciting journey of reimagining this remarkable venue’s future.”
A creditors meeting held earlier this week decided to liquidate the holding companies of the two venues.
The Carlton Club trades in a company called Furry Meatball while the Windsor Castle business is housed in a corporate vehicle called Floss Bottom.
The Windsor Castle collapsed owing over $200,000 to employees, $66,104 to trade creditors and $421,412 to the tax office, documents lodged with the corporate regulator reveal.
Unsecured related parties were also listed as being owed $380,351.
Administrator Ms Burdett said employees were likely to be paid out in full from the liquidation, while they said unsecured creditors were projected to get anywhere from 18 to 94c on the dollar.
The company’s assets were worth between $1.2m to $2.4m, Ms Burdett’s lowest and highest estimates revealed.
The Carlton Club was listed as owing more than $350,000 to employees, over $3.4m to unsecured creditors and $1m to the tax office, at the time of its collapse.
Ms Burdett predicted employees would be paid out in full, but said unsecured creditors were likely to no more than 18c on the dollar and possibly nothing.
The company’s assets were listed as being worth between $1m to $2.1m.
Former Carlton Club and Windsor Castle owner Tracey Lester said she was “extremely pleased” the venues had found a buyer and the sale covered all staff entitlements and secured jobs.
But she added she was deeply disappointed her offer to recapitalise the business had been rejected by the administrator – a plan she believed would have been best for all impacted parties.
“The sale of both the Windsor Castle and the Carlton Club has been an extremely challenging process,” she told the Herald Sun.
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