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135-year-old pub The Carringbush Hotel falls into liquidation

An iconic Melbourne pub closed doors after it was revealed it would need to charge $20 for a beer to survive. But it’s more complicated.

Why are so many companies collapsing in Australia?

A 135-year-old pub that was forced to close its doors permanently has still fallen into liquidation.

The Carringbush Hotel, which was based in Melbourne, was shuttered at the start of June with the pub group’s owners citing “horrendous” expenses, adding they would need to charge a whopping $20 for a beer to survive.

However, news.com.au can reveal that The Carringbush Hotel operators had been locked in a bitter legal battle with its landlords.

A case was launched at the Victorian Civil and Administrative Tribunal (VCAT) by the landlords last year with six complaints made against The Carringbush Hotel tenants.

A judgment released in May stated there was “significant animosity” between the two parties and ruled the legal proceedings launched by the landlord were “vexatious”.

The landlord had sought an interlocutory injunction in October last year to restrain what The Carringbush Hotel did on site.

The Carringbush Hotel was closed and owner Liam Matthews had to put it into liquidation. Picture: Ian Currie
The Carringbush Hotel was closed and owner Liam Matthews had to put it into liquidation. Picture: Ian Currie

They made six complaints about the The Carringbush Hotel tenants and sought a range of orders, while the VCAT Judgement noted there was escalating “animosity” between the parties.

The landlord’s demands included that the pub operators “immediately cease playing music at the premises at excessive volume levels at any time and cease playing music outside of trading hours” and “to cease contact or otherwise harass” the landlord.

The landlord also sought immediate access be granted to The Carringbush Hotel premises and “to cease from destructing and interfering with any property of the landlord on the premises and in the licenced area”.

The Carringbush Hotel tenants denied the landlord’s claims and argued against the case.

In November, VCAT ruled against granting the injunction and found the legal proceedings were “substantially unsuccessful”.

The Carringbush Hotel tenants launched their own actions seeking costs for defending the case.

The Carringbush Hotel, Langridge St in 1985. Picture: News Corp
The Carringbush Hotel, Langridge St in 1985. Picture: News Corp

VCAT’s acting senior member Holly Nash ruled that The Carringbush Hotel’s tenants were “caused substantial legal costs” and that the landlord had persisted with the legal proceedings “in pursuit of baseless resistance and objections”.

She said there was no evidence of the tenant having breached the lease or caused the matters being complained of, while some of the orders sought were outside the jurisdiction of the Tribunal.

The landlord failed to serve any notices of breach for any alleged breach of the lease or alleged breach of the licence by the tenant, she added in her VCAT Judgement.

“His conduct can be properly described as “ … conduct which is seriously and unfairly burdensome, prejudicial or damaging,” she added in her Judgement.

Nash added that the landlords failure to “comply with basic obligations” including serving such notice to allow the tenant a reasonable opportunity to remedy any alleged breach before commencing the legal proceedings through VCAT was “vexatious”.

She ordered the landlord play The Carringbush Hotel tenant’s costs.

Mark 'Chopper' Read movie production on set at The Carringbush Hotel Abbotsford back in 2012. Picture: News Corp
Mark 'Chopper' Read movie production on set at The Carringbush Hotel Abbotsford back in 2012. Picture: News Corp

Carringbush Hotel co-founder Liam Matthews said: “Unfortunately, as we have placed the company into liquidation I am not longer able to discuss anything to do with the business.”

CJG Advisory have been appointed to oversee the liquidation of The Carringbush Hotel but the insolvency firm refused to provide any comment to news.com.au on the situation.

Its been a torrid time for the hospitality and alcohol industry with a number of recent closures.

The Carringbush Hotel back in 1988. Picture: News Corp
The Carringbush Hotel back in 1988. Picture: News Corp

Popular Sydney outfit Malt Shovel Brewery will be shuttered at the end of August, impacting nine staff members with its owners blaming costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world.

The recent collapse of Melbourne-based Deeds Brewery also rocked the sector.

A number of other independent breweries have gone into administration in the past year including Brisbane-based Ballistic Beer Company, Adelaide business Big Shed Brewing, Melbourne-based Hawkers Brewery and the Wayward brand and Akasha Brewery, both from Sydney.

sarah.sharples@news.com.au

Read related topics:Melbourne

Original URL: https://www.news.com.au/finance/business/other-industries/135yearold-pub-falls-into-liquidation/news-story/d9ca4b35e90a4dd52e1326bcf0506074