Seven of Hobart’s best-known bars and restaurants will shut immediately after the hospitality group behind them collapsed into voluntary administration, Pulse can reveal.
The Pub Banc Group operates Cargo Bar, Jack Greene, Post Street Social, Observatory Bar, Republic Bar, Franklin Wharf Restaurant and Bar and Franklin Wharf Function Centre.
The venues span Salamanca, the waterfront and North Hobart and employ more than 80 staff.
Registered liquidator Adam Johnston of Hobart firm Apex Advisory was appointed voluntary administrator on Monday.
The venues will stop trading straight away while an urgent sale process gets underway.
Staff were told of the appointment on Monday and have been stood down while the group’s finances are assessed.
The group blamed an extended run of tough trading conditions, including rising food, beverage, utility and insurance costs, along with a shift in how people are spending.
Director Ian Vaughan said the decision was not taken lightly.
“Every reasonable option was explored with the aim of protecting jobs, preserving the businesses and maintaining the contribution our venues make to the community,” Vaughan said.
“Today, our thoughts are primarily with our employees, many of whom have dedicated years of service and helped create the welcoming experiences for which our venues are known.”
Apex Advisory managing director Tim Booker will lead the search for a buyer.
“The purpose of the voluntary administration is to preserve the value of these businesses and move quickly to a sale or recapitalisation, with the aim of seeing the venues reopen under new ownership,” Booker said.
“Our objective is to protect jobs wherever possible, maximise the outcome for creditors and secure the long-term future of these venues for the Tasmanian community.”
Booker said he expected “significant interest” from operators and investors in Tasmania and nationally.
“These are iconic venues with strong brands, prime locations and loyal patronage and assets of this quality rarely come to market,” he said.
Tourism, Hospitality and Events Minister Roger Jaensch acknowledged the collapse.
He said the state government, through Jobs Tasmania, had contacted the administrator and was working to connect affected staff with support and services.
“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,” he said.
Suppliers and other creditors will be contacted in the coming days, with the first meeting of creditors to be held within eight business days.
People with questions about existing bookings, functions or gift vouchers can email [email protected].
