Fire sales of watering holes
It's the second inner-suburban hotel to be put on the market since Mr Reardon was declared bankrupt in June, losing control of three popular freehold and leasehold venues in North Fitzroy, Abbotsford and South Melbourne.
A fourth hotel apparently escaped the collapse after control of the Richmond pub was transferred to his wife, Rosemary, for $1 just one day before Mr Reardon was declared bankrupt.
PPB Advisory, acting on behalf of Bendigo and Adelaide Bank in the mortgagee sale of the North Fitzroy Arms, declined to comment on the debt owed by Mr Reardon.
The 139-year-old hotel at 296 Rae Street is leased until 2026 to Max's Hotel Group. The 570 square-metre building returns a rent of $99,044 per annum. Mr Reardon bought the freehold for $1.4 million in 2003.
The auction comes after the Rising Sun Hotel in South Melbourne was sold for about $2 million in July to publican Peter Giemza, owner of the nearby Palmerston Hotel.
The Reardons lost control of the property after two of their companies were placed in external administration. Debts for the company are estimated to be at least $1.76 million, according to ASIC documents.
Abbotsford's Carringbush Hotel is expected to hit the market as PPB Advisory seeks to recover a debt accrued by the freehold company that is in external administration.
The future of the final pub in the group, the All Nations Hotel in Richmond, is less certain.
The hotel was bought for $1.005 million in 2007 by Ms Reardon, but the leasehold company was run by Mr Reardon and jointly owned by the couple until June. Mr Reardon said he held the share for a trust but ASIC documents show he held the share for himself.
The North Fitzroy Arms auction is being handled by Jamie Perlinger of Burgess Rawson and Terry Board of TJ Board.
cvedelago@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Michael Reardon's hotel assets are being sold off following his bankruptcy. The North Fitzroy Arms is expected to fetch about $1.9 million at auction, and other properties like the Rising Sun Hotel have already been sold.
The hotels are being sold because Michael Reardon was declared bankrupt, leading to the loss of control over his properties. The sales are part of efforts to recover debts owed by his companies.
The North Fitzroy Arms is expected to sell for approximately $1.9 million at auction.
The sale of the North Fitzroy Arms is being managed by Jamie Perlinger of Burgess Rawson and Terry Board of TJ Board.
The Rising Sun Hotel in South Melbourne was sold for about $2 million to publican Peter Giemza, who owns the nearby Palmerston Hotel.
The future of the All Nations Hotel in Richmond is uncertain. It was bought by Ms. Reardon in 2007, but the leasehold company was run by Mr. Reardon until June.
Michael Reardon's companies are in external administration with debts estimated to be at least $1.76 million, according to ASIC documents.
The Carringbush Hotel in Abbotsford is expected to be put on the market as part of efforts by PPB Advisory to recover debts accrued by the freehold company in external administration.
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