North Adelaide pub calls last orders
Historic North Adelaide pub The Archer Hotel closed its doors over the weekend after failing to attract a buyer.
The hotel’s last hope to find a buyer fell through in October when an offer of $360,000 by an unnamed buyer was withdrawn following the failure of operator Huntsman Hotel, who fell into administration last month with unpaid rent and taxes of more than $300,000
Administrator Chris Powell from Duncan Powell said the company would probably be wound up, with plant and equipment sold in the coming weeks.
“We’ve been negotiating or attempting to negotiate with the landlord to offer the business for sale but it would require a significantly reduced rent given the trading of the hotel,” Powell told The Advertiser.
“The business doesn’t support the standing rent but the landlord is not prepared to move in terms of rent. We were unable to continue to trade and so we’ve ceased to trade.”
Huntsman stopped paying rent in May, according to Duncan Powell’s latest report to creditors. Employees are owed close to $143,000, while trade creditors are owed more than $192,000. The property’s landlord has begun legal action to recover more than $160,000 in unpaid rent.
The pub posted a loss of close to $333,000 in the 2017 financial year, followed by a $146,000 loss in 2018.
In the event of liquidation, The Archer would probably remain vacant for an extended period of time, Powell told The Advertiser.
“It’s very difficult, if a hotel is stripped of plant and equipment, for it to be reopened in a short time-frame,” he said.
“It’s one thing to buy plant and equipment in situ and another to fit out a hotel from scratch.”
Sheridan Randall, 20th November 2018
