Creditors have approved an $850,000 rescue deal to prevent Perth’s historic Royal Hotel from being placed into liquidation, allowing the central business district venue to continue trading.
The proposal was put forward by the Parker Group, whose owner and manager, John Parker, operates the pub alongside the Busselton Pavilion and Ciao Dandy in Karrinyup.
Creditors of Wellington Pty Ltd, the company behind the Royal Hotel, backed the arrangement on Thursday morning. The hotel was built in 1882 at the corner of William and Wellington Streets.
Administrators Jack James and Paula Smith, of Rodgers Reidy, estimate that Wellington owes about $3 million. The Australian Taxation Office is the largest creditor, with an estimated claim of $2.4 million.
A report lodged by the administrators said creditors would have received nothing if the company had been liquidated. Under the approved deal, they are expected to recover 22 cents for every dollar owed.
The administrators said there was “a strong indicator” that the company had been insolvent since at least January 2024, with about $2.2 million in debt potentially incurred after that point.
Mr Parker spent $13 million restoring the Royal Hotel in 2019. The administrators said a liquidator might have been able to pursue a claim against him for insolvent trading, but added that he would probably not have the funds to meet any successful judgment.
“It would indicate that the (Parker) would not have the financial capacity to meet a judgement debt (if successful),” the report said.
The Busselton Pavilion and Ciao Dandy remain under separate voluntary administration proceedings.
