The owner of two iconic Melbourne pubs that went bankrupt and owed $1.5 million to creditors has blamed the Covid pandemic for her financial problems.
The Carlton Club on Bourke Street in Melbourne’s CBD and the Windsor Castle Hotel on Albert Street, with its signature pink elephants on the roof, have both been under voluntary management since November 17.
Both sites remain open while Cor Cordis administrators seek urgent expressions of interest to restructure or sell the business.
One of the options on the table is a deed of corporate arrangement (DOCA), an agreement between the company and its creditors that would avoid liquidation.
Owner Tracey Lester said in a statement that “the last few years have been incredibly challenging in dealing with the ongoing impacts of the Covid-19 pandemic.”
‘We are at the end of a restructuring process and I continue to work closely with my advisors and legal team to achieve the best possible outcomes for my team, for these much-loved, iconic Melbourne venues, and a win for the hospitality industry, proof that this vibrant city continues to thrive.’
Ms Lester, from New Zealand, has operated both pubs for more than 20 years under long lease agreements with private owners.
Major creditors include the Australian Taxation Office, which has filed a claim for an outstanding superannuation benefit of $107,044, the Australian Financial Statement reports.
The Windsor Castle Hotel (photo) has been under voluntary management since November
The three-storey Carlton Club is a popular restaurant, cocktail bar and nightclub (pictured)
The ATO has made a total claim of $1.12 million and in total unsecured creditors are owed approximately $1.5 million.
Mrs Lester promoted the sale of both pubs on social media before they collapsed.
‘After 24 years, it is time to pass on my beloved ‘second child’ to the new custodian who can look upon [it] with fresh eyes and injecting some new energy and FUN into Windsor’s favorite local pub,” she wrote of the Windsor Castle Hotel.
In a post promoting the Carlton Club, she wrote: ‘Have you ever dreamed of having your own bar? Expressions of interest are now open’.
The three-storey Carlton Club is a popular restaurant, cocktail bar and nightclub, while Windsor Castle is a corner pub with a beer garden and banquet rooms.
They aren’t the only popular Melbourne venues to collapse in recent months.
In September it was revealed that the Carringbush Hotel had closed its doors with $1.2 million in debt, of which $411,000 was owed to the ATO.
Liquidators have warned that a return to creditors is unlikely.
The Windsor Castle Hotel is a corner pub with a beer garden and several function rooms
The Windsor Castle Hotel has three striking pink elephants on its roof (pictured)
The Carringbush Hotel underwent a major renovation in 2019 but was hit hard by the Covid pandemic, according to curator Mathew Gollant.
“Following the pandemic, a number of disputes between the company and the landlord of the property have resulted in several VCAT cases being brought against the company,” he said in a statement.
Mr Gollant said it was possible the Carringbush Hotel had been operating since June 30, 2022 while insolvent.
The pub made a loss of $460,000 between July 2021 and June 2023.