LIQUIDATION: Court orders iconic pub to be wound up
A $2.4 MILLION debt has thrust the future of one of Bundaberg's oldest hotels into uncertainty.
Formerly trading as the Grand Hotel Bundaberg, Tomik Pty Ltd was ordered to be wound up by the Federal Court earlier this month after the Australian Taxation Office made an application for it to be put into liquidation in April.
The company owes more than $1.2 million to the ATO.
Appointed as liquidator by the court on August 3, Bradley Vincent Hellen, of Pilot Partners, said Tomik's insolvency woes stemmed from its sizeable tax debt.
"This company has been around for a long time and I don't think they'll necessarily be closing," Mr Hellen told the NewsMail.
"My understanding is the hostel is still operating ... And the hotel is not necessarily closing either."
The Grand Hotel's doors have been shut since July 2017, when the business announced a temporary hiatus due to renovations.
But a meeting held between Mr Hellen and directors Christine and Brian Peter Dittmer yesterday revealed there was still hope for the iconic pub.
"As I understand it the director was looking to refinance the whole project," Mr Hellen told the NewsMail.
Pilot Partners is in the early stages of its investigations into the company's insolvency.
A spokesperson said while Tomik Pty Ltd's directors weren't personally bankrupt, their inability to secure finance to pay off their $1.2m ATO debt meant liquidation had been inevitable.
The company also owes in excess of $1.2 million to secured creditor NAB.
"Some of that will be reduced once we see what assets (like vehicles, furniture, property) are to be realised," they said.
It is understood discussions over the possible sale of real estate property are also ongoing.
Bundy's Grand Hotel opened in June 1885.
In addition to the Grand Hotel, Tomik Pty Ltd has traded as the Grand Mid Point Hostel, the Sydney Hotel, Fat Albert's Bar and Pool Room and the Rocket Club in the past.
The Federal Court ordered the Deputy Commissioner of Taxation's court costs be fixed at $2546 and reimbursed in accordance with the section 466 of the Corporations Act 2001.
The NewsMail was unable to reach Mr and Mrs Dittmer.