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Dunalley Hotel faces $700,000 debt crisis, possible closure

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Dunalley Hotel faces $700,000 debt crisis, calls in administrator to rescue business. Image / Supplied

The Dunalley Hotel is facing alleged debts of at least $700,000 and has called in a company administrator to save the business.

Administrator Shelley-Maree Brooks, representing Rodgers Reidy Tasmania, estimates that the company’s debts will surpass $700,000.

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Employee entitlements are estimated to exceed $200,000, with unsecured creditor claims reaching over $500,000.

The business, which became indebted due to ongoing trading losses driven by the impact of Covid-19, the tourism downturn, the cancellation of Falls Festival, and rising costs, is actively being marketed for sale – with the possibility of closure if a buyer is not found.

Brooks told Mercury she has returned the business to profitability by ceasing the operation of pokies, slimming down the menu, raising prices and securing new suppliers – but stressed this was not a viable long-term operation for the business.

“I can’t trade indefinitely. I’ve been trading for a month to five weeks now and trade’s going really well, we’re trading profitably, but it’s not forever. This is a short-term situation until hopefully we can find a buyer,” she said.

The company director and hotel’s licensee of CLLJ said only ‘time will tell’ what is in store for the future of the business.

Local residents believe that the pub ‘has the potential to be one of the best in Tasmania,’ but had been neglected in recent years.

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“Decent pub that could’ve easily been a bit of a community hotspot but they’ve let it go,” said one local online.

“Obviously COVID effected them with a decrease in tourism but in reality a local pub should be for the locals. A spot with events/live music and maybe pool tables or something for people to make going to the pub worthwhile.”

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