Out of pocket eatery owner blames bank valuation

A Newcastle restaurateur has told a Senate inquiry a bank commissioned valuation was flawed, as it did not take into account the antisocial behaviour occurring outside the eatery.

Restaurateur Alan Harrison has told a banking Senate Inquiry that he bought the inner-city eatery for $635,000 in 2009 on the basis of a valuation commissioned by the Commonwealth Bank.

Mr Harrison says the restaurant began taking massive hits from escalating violence and anti-social behaviour.

He said paralytic young people would gather outside and patrons were forced too "run a gauntlet of intimidating gangs in the street".

Mr Harrison says the trouble includes drunk people shouting, swearing, spitting and bashing against the glass frontage of the restaurant.

Mr Harrison says he is currently in a financially disastrous situation as the law and order issues made it impossible to operate the restaurant.

The Newcastle restaurant is now on the market for $450,000 and Mr Harrison has now taken aim at the valuation commissioned by the CBA.

He says a risk analysis failed to make reference to the law and order issues and as a consequence the valuation was too high.

Source: ABC News, 22 May 2012