The Carringbush Hotel, which was a popular pub in Abbotsford, was placed into liquidation earlier this month owing over a million dollars to its creditors. According to a report, the bank account of the establishment only had 63 cents in it when it went into liquidation.
The pub’s operators cited the high expenses as the reason for its closure.
They also clashed with its landlords, and they had been locked in a legal battle.
Details about the establishment’s financial troubles were revealed in a report by an insolvency firm.
According to the report by the liquidator, Matthew Golant, the Carringbush Hotel had sunk into debt and its employees were not paid.
He noted that the staff members were owed almost $40,000. Liam Matthews, the operator of the pub, said that the owners had already made arrangements for the employees’ entitlements.
Some of the staff members who worked for the company that owned the pub have now joined other establishments.
The owners were also one of the biggest creditors of the other company, which had a debt of over $300,000.
According to the report, the equipment used in the renovation of the pub was worth over $60,500.
However, the landlord had taken ownership of the items due to debts incurred.
The Australian Taxation Office was one of the company’s biggest creditors.
Other prominent creditors included several breweries that had debts of over $20,000.
Other suppliers, such as Origin Energy, owed the company around $4000.
Food suppliers owed up to $2000 are also affected by the closure.
The pub, which had been in existence for 135 years, announced on its Facebook page that it would be closing its doors after five and a half years.
It noted that it was struggling financially and decided to end its operation on a high.
The pub thanked its regulars and staff members for their support over the years.
It also noted that it would be closing its doors after this week.
It urged its customers to celebrate its last day by holding a party.
The pub noted that it would be closing down its menu and would only be accepting walk-ins.
This comes at a time when many establishments are struggling due to the high expenses.