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. 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. Post Street Social is one of seven well-known Hobart venues which will close immediately, as administrators look to sell the business. The venues, which include six waterfront bars along Salamanca Place and Franklin Wharf in Hobart’s CBD, employ more than 80 staff in total. It’s understood staff were only informed of the closures this morning, which were then announced on the pubs’ social media pages this afternoon. “We are deeply sorry to inform you that, effective immediately, we are unable to host any upcoming reservations, private functions, or scheduled events,” Jack Greene said in a statement posted to social media. “We understand the massive impact this has on your plans - especially for those who have trusted us with milestone celebrations, weddings and corporate gatherings. “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. 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. Director of Pub Banc Group and Hotel Banc Group Ian Vaughan told the ABC that rising costs of food, beverages, utilities and insurance had combined with changes in consumer behaviour to create “significant headwinds” for the business. 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. Nine.com.au has contacted Apex Advisory for comment.