Well known Melbourne pubs the Carlton Club and Windsor Castle Hotel are in limbo after hotelier Tracey Lester was forced to call in administrators, and creditors are urgently seeking buyers.
A former artist, emanating from New Zealand, Lester has held leases at the Carlton and Windsor for more than two decades, operated under op-cos Furry Meatball and Floss Bottom, respectively. She previously operated the Gertrude Hotel, in Fitzroy.
In November both companies sank into voluntary administration, with Cor Cordis’ Shaun Matthews and Rachel Burdett appointed.
Major creditors are said to include National Australia Bank, and the Australian Tax Office, which has lodged claims totalling $1.1 million against Furry Meatball, largely in relation to unpaid superannuation of the Carlton Club’s 48 employees.
Other, unsecured creditors are believed to be owed around $1.5 million.
At a creditors’ meeting in December the administrators spoke of ‘urgently’ seeking expressions of interest to either restructure or recapitalise. Lester proposed a DOCA (Deed of Company Arrangement), in the hope of avoiding liquidation.
“The past few years have been incredibly challenging as we navigate the ongoing impacts of the COVID-19 pandemic on both The Windsor Castle and The Carlton Club,” she said in a statement.
The multi-level Carlton Club is a popular late-night hotel, with a rooftop bar. The freehold is held by Philip Kapogiannis’ Pandez Holdings, which acquired it in 2002 for $5.9 million.
Located in Melbourne’s inner suburbs, the Art Deco Windsor Castle was established in 1871 and famously sports three pink elephants on its roof. The freehold is on the books of Chestervillage P/L, owned by three children of the late Nick Fermanis.
Pre-empting the demise, Lester had previously offered up both businesses on social media, calling for ‘Expressions of interest’ on the Castle.
“After 24 years, it’s time to pass my beloved ‘second child’ on to its new custodian who can look at [it] with fresh eyes and inject some new energy and FUN into Windsor’s favourite local pub,” she wrote.
Both pubs are currently still operating, hoping to “preserve the value of the assets”, although opening late in the day.
Thanking friends and supporters for “all the kind messages” the long-timer publican remains positive.
“So don’t be shy,” she says. “Come in for a drink or a meal and to show your love for our iconic Melbourne venue and the amazing people behind them – your support means the world to us till we are on the other side of this.”
Cor Cordis were contacted for an update on the sale campaign, and a representative stipulated that while they were unable to provide more information at this time a statement is expected in the coming weeks.
