The Carringbush Hotel in Abbotsford, which was a popular local pub in Melbourne, closed its doors due to financial troubles. It had to charge a $20 fee for a pint and a $50 for a meal.
The establishment noted that it was struggling due to Victoria’s financial situation.
According to an ASIC notice, the Carringbush was winded up on June 4.
It is not the only establishment in the state that has closed due to financial troubles.
The hospitality industry is struggling due to the high costs of living and the increasing number of people who are unable to meet their mortgage obligations.
According to the Herald Sun, a country pub that has been around for 168 years is struggling financially. It has recently appointed a restructuring expert to help the owners come up with a new business plan.
This type of expert is usually appointed when a company is on the verge of insolvency.
In total, there have been almost 50 liquidation notices issued in Victoria this month. Some of these include the Carringbush.
In a message to his members, David Canny, the president of the AHA Victoria, noted that several factors are affecting the industry, such as the liquor excise and benefits tax.
In response to the concerns of the industry, Mr Canny requested that the government freeze the liquor excise for a year to help the owners of public houses avoid having to pass on the additional costs to the customers.
He also called for the establishment visa process to be streamlined.
Mr Canny has been a part of the hospitality industry for over 20 years, serving as the licensee of the Red Lion Hotel in Ballarat and the Montague in South Melbourne.
Before the Carringbush closed its doors, its co-founder said that the cost of operating a hospitality business in the state was horrendous.
According to Mr Matthews, the cost of wages had gone up by eight percent, energy bills had gone up by over 10 percent, and the pubs were charging customers $10 for each beer delivery.
He said he had no choice but to raise the price of Mountain Goat’s lager to $20 from $15 a couple of weeks ago.
In March, the popular local pub in Collingwood, known as the Bendigo Hotel, closed its doors due to financial troubles.
The establishment, which was built in 1911, cited various factors as the reason for its closure. One of these included the high cost of insurance.