Some of Hobart’s best-known hospitality venues have closed as owner Pub Banc Group enters voluntary administration, citing costs of business and changes to consumer behaviour.
Pub Banc Group, aka Hotel Banc Group, employ over 80 people across seven venues, being Observatory Bar, Cargo Bar, Republic Bar, Post Street Social, Jack Greene, Franklin Wharf Restaurant & Bar and Franklin Wharf Function Centre.
Staff have posted on social media that due to the immediate closure of all the venues they can no longer host upcoming reservations or events, including “milestone celebrations, weddings, and corporate gatherings”.
Corporate receivers and managers Apex Advisory has been appointed and will lead an urgent sale process for the seven closed venues.
“The purpose of the voluntary administration is to preserve the value of these businesses and move quickly to a sale or recapitalisation, with the aim of seeing the venues reopen under new ownership,” says Apex MD Tim Booker, who disclosed they will also work to determine a process for reconciling prepaid bookings and deposits.
“Our objective is to protect jobs wherever possible, maximise the outcome for creditors and secure the long-term future of these venues for the Tasmanian community.
“These are iconic venues with strong brands, prime locations and loyal patronage, and assets of this quality rarely come to market.”
Pub Banc director Ian Vaughan says the business had faced significant headwinds in the rising cost of f&b, utilities, insurance and other operating expenses, while simultaneously “consumer behaviour has changed” in the harbourside city.
He says the pubs have provided employment and supported a wide network of suppliers, playing a role in the social fabric of Hobart, and lamented that to have reached the point of administration was “deeply disappointing” but that their thoughts “are primarily with our employees” – many having worked years of dedicated service.
Hospitality Tasmania CEO Steve Old has weighed in on the failure, noting that hospitality is the third-largest employer in Tasmania.
To this end, Roger Jaensch, Minister for Tourism, Hospitality and Events, says government’s immediate focus is to support impacted workers.
Jobs Tasmania has engaged with Apex and is said to be working closely to ensure workers are connected with support and services, and Jaensch offers they “hope a viable buyer can be secured as quickly as possible”.
Independent MP Kristie Clark – also a Hobart publican – told ABC Hobart venues are confronted with cost-of-living pressures as patrons pull back on discretionary spending.
Tasmanian Premier Jeremy Rockliff made a statement lashing out at council, suggesting they were a contributing factor and saying more could have been done to ‘cut red tape’.
Hobart Lord Mayor Anna Reynolds hit back, noting a state government under stress and labelling the Premier’s comments as “a bit of desperation”.
