The former operators of a regional NSW pub at the centre of a fatal underage drinking scandal are facing the collapse of their hospitality company, with creditors claiming more than $1 million.
Murrells Hospitality Group, the company previously run by Benjamin and Rachel Murrells at Temora Hotel in the Riverina, entered voluntary administration on 4 September, with its administrator recommending liquidation amid mounting debts and investigations into its financial affairs.
The collapse comes after the company was disqualified from holding a liquor licence for five years following the death of a 17-year-old boy who crashed a vehicle in the early hours of 21 March 2020, after a drinking session at the hotel.
A Liquor and Gaming NSW judgment published in May 2025 detailed the circumstances surrounding the tragedy and the extent of the hotel’s service to two underage patrons on the night in question.
“On March 20, 2020, a 17-year-old minor entered Temora Hotel and between the hours of 9.44pm and 11.27pm was sold, supplied and served a total of 19 alcoholic beverages, of which he consumed seven,” read the judgement.
“Also on March 20, 2020, a second 17-year-old minor entered Temora Hotel and between the hours of 12.01pm and 11.46pm was sold, supplied and served approximately 45 alcoholic beverages by staff employed by the hotel, of which he consumed at least 20.
“On March 21, 2020, in the early hours of the morning prior to 6.00am, one of the minors drove a motor vehicle and was involved in a crash resulting in his death,” the judgment continued.
The decision also found neither teenager had been asked to provide proof of age by hotel staff.
Temora Hotel was ordered to close for two weeks following regulatory action, while Murrells Hospitality Group was found guilty of selling liquor to a minor in 2021. The company received an 18-month conditional release order without conviction.
Despite the serious breaches, the regulator acknowledged the business had maintained an unblemished compliance record for more than a decade before the incident.
The hotel has since changed hands, but the company’s financial difficulties have now come into focus through the administration process.
According to the administrator’s report lodged with the Australian Securities and Investments Commission (ASIC), the company owes the Australian Taxation Office $833,091.82, $153,200.72 to a business finance provider and $110,500 to Bidgee Hotel Leasing P/L.
Other listed creditors include Prospa, owed $95,011.23, B&E Foods, owed $13,930.86 and American Express, owed $12,187.45.
The total claimed by unsecured creditors stands at $1,043,813.24.
The administrator is also pursuing the recovery of $516,409 in loans involving related parties, including Bidgee Hotels (unrelated to the current venue operators), Grazify Catering Co and the Murrells Family Trust.
The report states investigations are continuing into potential insolvent trading, with the administrator recommending creditors vote to place the company into liquidation.
Creditors are next scheduled to meet on 12 October as the administration process continues.
