Seven well-known Hobart bars and restaurants have shut their doors immediately after the owner, Pub Banc Group, collapsed into voluntary administration, Pulse Tasmania reported on Monday. The closures affect more than 80 employees.
The venues include the Republic Bar in North Hobart, Salamanca’s Cargo Bar and Jack Greene, and waterfront establishments Post Street Social, Observatory Bar, Franklin Wharf Restaurant and Bar, and the Franklin Wharf Function Centre.
Staff were informed of the decision on Monday morning and have been stood down while the group’s finances are assessed, according to the Pulse Tasmania report.
The company has appointed Adam Johnston of Hobart firm Apex Advisory as the voluntary administrator. In a statement reported by Pulse Tasmania, Pub Banc Group director Ian Vaughan said the company had explored every reasonable option to protect jobs and preserve the businesses. He cited difficult trading conditions, including rising costs for food, beverages, utilities, and insurance, as reasons for the collapse.
The administrator’s immediate goal is to seek a sale or recapitalisation of the businesses, with the aim of reopening the venues under new ownership. Apex Advisory managing director Tim Booker told Pulse Tasmania that the purpose of the administration was to “preserve the value of these businesses”. He said he expected “significant interest” from potential buyers both in Tasmania and nationally.
A first meeting of creditors is scheduled to be held within eight business days, Pulse Tasmania reported.