Seven Hobart venues close without warning as owners go under

Seven of Hobart’s most well-known bars and restaurants have closed their doors without warning, as the hospitality group managing them collapsed into voluntary administration, citing rising costs and changing consumer behaviour.

The Pub Banc Group operates Cargo Bar, Jack Greene, Post Street Social, Observatory Bar, Republic Bar, Franklin Wharf Restaurant and Bar and the Franklin Wharf Function Centre.

The venues, which include six waterfront bars along Salamanca Place and Franklin Wharf in Hobart’s CBD, employed more than 80 staff in total.

It’s understood staff were only informed on Monday morning that they were being stood down.

Hours later, the closures were announced on the venues’ social media pages.

Pub Banc Group director Ian Vaughan said the appointment of administrators was “deeply disappointing” but “an extended period of challenging trading conditions” had made the businesses unsustainable.

“Like others in the hospitality industry our group has faced significant headwinds in recent years,” Vaughan said.

“Food and beverage input costs, utilities, insurance and other operating expenses have all continued to increase, many sharply, while at the same time consumer behaviour has changed.

“Today, our thoughts are primarily with our employees, many of whom have dedicated years of service and helped create the welcoming experiences for which our venues are known.”

A number of the venues shared a joint statement on social media informing their customers of their immediate closure.

“We are deeply sorry to inform you that, effective immediately, we are unable to host any upcoming reservations, private functions, or scheduled events,” it read.

“We understand the massive impact this has on your plans - especially for those who have trusted us with milestone celebrations, weddings and corporate gatherings.

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“We are devastated to be delivering this news to you so abruptly.”

Corporate finance and restructuring firm Apex Advisory has been appointed as administrator of the venues.

The company will lead an urgent sales process, but the venues will remain closed while that happens.

Apex Advisory managing director Tim Booker said the firm would be seeking an urgent sale of the businesses, with the aim of a swift reopening under new ownership.

“The purpose of the voluntary administration is to preserve the value of these businesses and move quickly to a sale or recapitalisation,” Booker said.

“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.”

The hospitality group is the latest in a string of high-profile business closures recently, as increasing costs and inflationary pressures combine with a decline in discretionary consumer spending to squeeze the hospitality sector from both directions.

It’s currently unclear what will happen to customers’ deposits on pre-paid bookings and functions, with the venues saying they will share the process for making claims once the administrators make this clear.