The owner of two iconic Melbourne pubs that collapsed due to a $1.5 million debt to creditors has blamed the Covid pandemic for her financial woes.
The Carlton Club on Bourke Street in Melbourne’s CBD and the Windsor Castle Hotel on Albert Street, with its distinctive pink elephants on the roof, have been under voluntary administration since November 17.
Both premises remain open while Cor Cordis administrators seek urgent expressions of interest for a restructuring or sale of the business.
Among the options on the table is a deed of company formation (DOCA), which is an agreement between the company and its creditors that would avoid liquidation.
Owner Tracey Lester said in a statement that “the last few years have been incredibly challenging as we navigate the ongoing impacts of the Covid-19 pandemic.”
“We are at the end of a restructuring process and I remain committed to working closely with my advisors and legal team to achieve the best possible results for my team, for these iconic and beloved Melbourne venues, and a win for the hospitality industry: proof that it continues to thrive in this vibrant city.
Ms Lester, from New Zealand, has run both pubs on a leasehold basis with private landlords for more than two decades.
Major creditors include the Australian Taxation Office, which has lodged an outstanding superannuation claim for $107,044, the Australian Financial Review information.
The Windsor Castle Hotel (pictured) has been in voluntary administration since November.
The three-story Carlton Club is a popular restaurant, cocktail bar and nightclub (pictured)
The ATO has submitted a total claim of $1.12 million and in total unsecured creditors are owed around $1.5 million.
Lester promoted the sale of both pubs on social media before their collapse.
“After 24 years, it’s time to pass my beloved ‘second son’ to his new custodian, who can look at him with fresh eyes and inject new energy and FUN into Windsor’s favorite local pub,” he wrote of Windsor Castle. Hotel.
In a post promoting the Carlton Club, he wrote: ‘Have you ever dreamed of having your own bar? Expressions of interest are now open.’
The three-storey Carlton Club is a popular restaurant, cocktail bar and nightclub, while Windsor Castle is a corner pub with beer garden and function rooms.
They aren’t the only popular Melbourne venues to have collapsed in recent months.
In September, it was revealed that the Carringbush Hotel had closed its doors owing $1.2 million, of which $411,000 was owed to the ATO.
Liquidators have warned that a return to creditors is unlikely.
The Windsor Castle Hotel is a corner pub with a beer garden and various function rooms.
The Windsor Castle Hotel has three distinctive pink elephants on the roof (pictured)
The Carringbush Hotel underwent major renovations in 2019 but was hit hard by the Covid pandemic, liquidator Mathew Gollant said.
“In the wake of the pandemic, a series of disputes between the company and the premises owner led to several VCAT cases being brought against the company,” he said in a statement.
Gollant said it was possible the Carringbush Hotel had been operating in insolvency since June 30, 2022.
The pub suffered a loss of $460,000 between July 2021 and June 2023.