Tasmania’s hospitality industry says the collapse of a prominent Hobart pub group is a significant blow for the city, as the state government moves to support more than 80 workers who are understood to have been impacted.
The Pub Banc Group went into voluntary administration on Monday, closing seven venues across Salamanca, the waterfront and North Hobart.
Cargo Bar, Jack Greene, Post Street Social, Observatory Bar, Republic Bar, Franklin Wharf Restaurant and Bar and Franklin Wharf Function Centre have all been affected.
Hospitality Tasmania chief executive Steve Old said it was sad news for staff, suppliers and everyone connected to the venues.
“Losing them, even temporarily, is a significant blow for the city,” he said.
Old said the closures were another sign of the pressure on hospitality businesses across the state.
He pointed to rising food and drink costs, higher insurance and power bills and more cautious spending by customers.
“We’ve been warning for some time that many businesses are operating on incredibly tight margins,” he said.
“At some point, politicians at every level need to stop treating Tasmania’s major employing industries as convenient political targets and start recognising the enormous contribution they make to our economy and communities.”
“Hospitality is Tasmania’s third-largest employing industry. We create jobs, train young people, support local producers and underpin our visitor economy.”
“If elected officials are serious about growing Tasmania’s economy, they need to spend less time criticising the industries that create jobs and more time backing them to succeed.”
Tourism, Hospitality and Events Minister Roger Jaensch said Jobs Tasmania was working with the administrator to connect staff with support.
“We hope a viable buyer can be secured as quickly as possible, with the aim of seeing these venues reopen and protecting as many local jobs as possible,” Jaensch said.
Brad Saxby, a director of rival venues Botanica and The Den, said the writing had “been on the wall for some time”.
“We have been approached on multiple occasions over the past few years about the potential sale of the group or its venues, so today’s announcement is disappointing but not entirely surprising,” he said.
“Without a clear strategy to maintain and grow Tasmania’s population, it is becoming an increasingly risky environment for venues such as these.”
