PHILLIPS FOOTE FALLS, AS INSOLVENCIES GROW

The historic Phillip’s Foote pub in The Rocks was sadly one of the more than 150 NSW companies that failed in May, potentially heralding the start of the fall of the zombies.

In the aftermath of the pandemic and since government support began winding back in March, the number of businesses folding has increased. Most casualties are small to medium enterprises (SMEs), frequently in the hospitality, tourism and construction sectors.

The heritage building at 101 George Street had previously been used as stables, and a customs office, and a bar for sailors, until neglected and vacant for years.

In the early 1970s it was refurbished as a pub restaurant, and a few years later operation was taken on by a private family, who have run it since.

Set in a sometimes challenging precinct, the business had been under strain even before the pandemic, largely due to the massively reduced foot traffic around Circular Quay for years as the light rail was constructed.

The 2020 pandemic dealt further blows to visitation and working people in the area. 

Still holding a 10-year lease on the property, the tenants were faced with rectifying aspects of the old building, bringing untold measures of red tape and the need for considerable investment. 

But it is said to have been the end of the Federal stimulus that dealt the final blow, and the business entered liquidation through PFK, who predict more turmoil to come in the precinct, with “further interruptions” next year. 

The 158 NSW businesses that failed in May, according to ASIC, follow 122 in April. Other experts are sagely predicting insolvency numbers will continue to grow in coming months, as Federal support is wound back and end of financial year bills manifest.

American consumer credit reporting agency Equifax reports the gap between the bankruptcy levels of 2019 versus the artificially low numbers seen in 2020 is closing, as creditor wind-ups get “higher and higher”.