A popular pub that was forced to shut is doors three months ago collapsed owing an eye-watering $1.2million, it has now been revealed.
The Carringbush Hotel, located in Melbourne‘s inner north-west suburb of Abbotsford, permanently closed its doors on June 2.
Two days later, the business was placed into liquidation with a report this month from insolvency firm CJG Advisory revealing the true extent of the pub’s downfall.
The venue had just 63c in its back account when it collapsed, according to the report seen by news.com.au.
The pub owes $1.28million to creditors, with $411,000 of that owed to the Australian Taxation Office.
Liquidators have warned any return to creditors was unlikely.
The Carringbush Hotel underwent major renovations in 2019 but was hit hard by the Covid pandemic, liquidator Matthew Gollant said.
‘Following the pandemic, a number of disputes between the company and the landlord of the premises resulted in various VCAT cases being brought against the company,’ Mr Gollant said.
‘Facing the rising costs for supplies, the directors formed the view that the business may be unprofitable and took steps to wind up the company.’
Mr Gallant said it was possible the pub had been operating while insolvent since June 30, 2022.
‘From this time, the company incurred further debts totalling approximately $480,000,’ he said.
The hotel suffered a $460,000 loss between July, 2021 to June, 2023.
The landlord of the property also claimed it had been damaged and was owed $40,000.
The Carringbush Hotel co-owner Liam Matthews, 47, said the pub closed due to the ‘horrendous’ cost of ‘everything’ in the hospitality industry.
In order for the pub to survive, Mr Matthews calculated he would have had to raise the pub’s most popular beer Mountain Goat Lager from $15 a pint to $20.
Mr Matthews earlier told the AFR that wages for the pub’s 20 staff had increased by eight per cent since 2022.
The pub also saw a jump in power bills from $1,500 in 2020 to about $2,000 a month and also noticed an increase in its insurance costs.
Mr Matthews added the pub was also charged a beer delivery fee of $10 per keg – a cost that did not exist before the pandemic.
Source : https://www.dailymail.co.uk/
𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞, 𝐥𝐢𝐤𝐞, 𝐬𝐡𝐚𝐫𝐞, 𝐚𝐧𝐝 𝐜𝐨𝐦𝐦𝐞𝐧𝐭 𝐭𝐨 𝐬𝐭𝐚𝐲 𝐭𝐮𝐧𝐞𝐝 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐟𝐚𝐯𝐨𝐫𝐢𝐭𝐞 𝐧𝐞𝐰𝐬 𝐜𝐡𝐚𝐧𝐧𝐞𝐥!
📌YouTube- https://www.youtube.com/@serendibnews
📌Facebook – https://web.facebook.com/serendibnews.com.au/
📌Instagram – https://www.instagram.com/serendibnewsau
📌TikTok – https://www.tiktok.com/@serendibnews
📌Twitter- https://x.com/SerendibNewsAu
📌LinkedIn- https://www.linkedin.com/in/serendib-news-au/
📌WhatsApp Group – https://tinyurl.com/2as67j52
📌WhatsApp Channel – https://tinyurl.com/bdf8f2jr
