Alcohol tax hike and lack of foot traffic blamed for the closure of the Edinburgh Castle on Currie St

One of South Australia’s oldest pubs called last orders for the final time this week – and just two months after a relaunch. The “nail in the coffin” reason has been revealed.

The recent alcohol tax hike was the “final nail” in the coffin for the historic Edinburgh Castle which shut its doors this week – just over two months after its relaunch.

One of Adelaide’s oldest pubs, the venue on Currie St was closed for more than five years, before it reopened in December 2023 under new operators, Jatin Malhotra and Rohit Kapur.

But this week it fell into liquidation, with a source close to the owners saying high rent and the growing costs of running the business left them with no choice but to close.

“It’s really tough with the overheads – bills, electricity, gas – and they weren’t getting enough sales,” said the source, who claimed the business was up to $300,000 in debt.

“The margins are so tight... they just had to pull the pin.”

About $500,000 was spent to renovate the pub with two new bars and a revamped beer garden.

On Monday, Robert Naudi was appointed liquidator to wind up the venue, which had seven employees.

In a statement to The Advertiser, Mr Naudi said that directors of Trident House Pty Ltd, the entity operating the venue, advised him that foot traffic was “significantly less than expected to the Ed Castle”, impacting their ability to meet minimum sales to cover overheads.

Mr Naudi said directors noted the “final nail” in the decision to liquidate was the latest increase in the excise tax on alcohol, which would have made the cost of a pint $15.

“They anticipated this further exacerbating the poor trading performance of the Company,” he said.

“The directors advised they had no further funds to inject into the company’s operations, and a difficult decision was made to liquidate the Company after considering all available options.”

The Edinburgh Castle Hotel on Currie St.

Former Edinburgh Castle owner Tony Bond at the pub in 2014. Picture: Campbell Brodie.

As of last week, Australia has the third-highest alcohol tax in the world. The tax on a pint of beer has jumped to 90 cents, while the tax on a slab is $20, according to the Brewers Association of Australia.

Mr Naudi said preliminary investigations indicate unsecured creditors are less than $100,000, though that could increase.

He added that Trident House is debt-free with the ATO and employees are full paid except for a small amount of superannuation.

An auction of assets at the venue is expected in coming weeks.

The heritage-listed Edinburgh Castle has the oldest trading licence in South Australia, dating back to 1837.

The grand old pub last closed its doors in September 2018, with the owner Tony Bond blaming disruption caused by a nearby construction project: a nearby $80m, 772-bed student accommodation complex.

The Edinburgh Castle Hotel was eventually sold for $2.5 million in 2021.

Originally published as Alcohol tax hike and lack of foot traffic blamed for the closure of the Edinburgh Castle on Currie St