Two ‘much-loved, iconic’ Melbourne pubs placed into administration
Two popular Melbourne venues have collapsed owing millions of dollars to creditors as administrators urgently seek a buyer.
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Two popular Melbourne venues have collapsed owing more than $1 million to creditors as administrators urgently seek a buyer to keep the “much-loved, iconic” hospitality businesses afloat.
Tracey Lester, owner of The Carlton Club and the Windsor Castle Hotel, brought in Cor Cordis administrators Rachel Burdett and Shaun Matthews late last month to explore either a restructure or sale of the businesses.
“The past few years have been incredibly challenging as we navigate the ongoing impacts of the Covid-19 pandemic on both The Windsor Castle and The Carlton Hotel,” Ms Lester said in a statement.
“We are at the closing end of a restructuring process, and I remain committed to working closely with my advisers and legal team to achieve the best possible outcomes for my team, for these much-loved, iconic Melbourne venues, and a victory for the hospitality industry —proof that it continues to thrive in this vibrant city.”
Unsecured creditors are owed $1.5 million, with the Australian Taxation Office submitting a total claim for $1.12 million, including superannuation.
The Carlton Club, a restaurant, nightclub and rooftop cocktail bar on Bourke Street in the CBD, operates under Furry Meatballs Pty Ltd. The Windsor Castle Hotel, operating under Floss Bottom Pty Ltd, is a pub near Chapel Street known for its three distinctive pink elephants on top.
Both venues continue to operate during the administration process.
“We’ve commenced an urgent review of the financial position of The Carlton Club and The Windsor Castle Hotel,” Ms Burdett said. “We will provide regular updates to all stakeholders as we work through the voluntary administration process.”
A creditors meeting was held last week with administrators seeking “urgent expressions of interest to either restructure or recapitalise the company, including via a deed of company arrangement (DOCA), and/or purchase [of] its assets”.
Ms Lester proposed the DOCA, which is a binding agreement between the company and its creditors to avoid liquidation.
The New Zealand-born artist turned publican has operated the businesses for more than 20 years under leasehold agreements with private owners, The Australian Financial Review reports.
She previously promoted the sale of the venues before their collapse on her Instagram account.
“After 24 years, it’s time to pass my beloved ‘second child’ on to its new custodian who can look at [it] with fresh eyes and inject some new energy and FUN into Windsor’s favourite local pub,” she wrote in September.
In May she posted an ad for the Carlton Club headed, “Ever dream of owning your own bar?”
Originally published as Two ‘much-loved, iconic’ Melbourne pubs placed into administration
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