The historic Stag hotel Adelaide closes down as pubs struggle to compete with “pop-ups”
The historic Stag Hotel
WELL-known Adelaide pub The Stag has closed its doors, bringing to five the number of Adelaide establishments running into financial difficulties recently.
The Stag was placed in receivership in late March with Ferrier Hodgson aiming to sell the business as a going concern.
The doors to the pub, on the corner of Rundle St and East Tce, were closed yesterday however.
Ferrier Hodgson partner David Kidman said efforts had been made to keep the doors open.
“Whilst the receivers and managers had entered into a sale contract with a purchaser, the sale of this iconic hotel unfortunately could not proceed as an extension of the lease was not forthcoming”.
The control of the hotel will now revert back to the landlord.
Up to 35 staff, including seven full-time employees, worked at The Stag.
Earlier this week an application to wind up the company running the Royal Hotel at Kent Town, 2 North Terrace Pty Ltd, was lodged by the Australian Taxation Office.
Other pubs, apart from the Stag, which have closed recently include the Dog and Duck on Hindley St and the Colonel Light Hotel on Light Sq. The Duke of York on Currie St is also on the market and has been placed in receivership.
Ian Horne from the Australian Hotels Association said costs such as wages and taxes for pub owners had been increasing, while turnover had been flat in recent years.
The number of “pop-up” venues in the city during events such as the Fringe Festival also made it difficult for “bricks and mortar” venues, he said.
Mr Horne said the recent festival season did not deliver a revenue boost for established venues and many would be facing difficulties as they came into the slower winter season.
“There was definitely one pop up too many,’’ he said.
“Bricks and mortar venues who still have to pay all their rates and taxes had a pretty ordinary February-March and that’s supposed to be the time when they get the boost to carry them through the cold Winter and some of them haven’t even been able to get to Winter.
“The general sense is that this last 12 months has been the toughest trading period in about eight years. It’s been a sliding decline since the GFC.’’
Mr Horne said Adelaide’s population growth had been slow for two decades and SA had the highest number of liquor licences per capita of any state in Australia.
“It’s not just the CBD, we’re seeing it in the country and the suburbs.’’
Mr Horne said no one had been spending money on renovations recently either, with the last investment push occurring from 2005-2010.
Source: Perth Now - 16th April 2015
