Fraser Short puts flagship hospitality company into administration
Hotelier Fraser Short has put his flagship hospitality company The Sydney Collective into administration, owing creditors about $5.5 million.
The Sydney pub king sold five hotels to the Laundy Hotel Group in a $300 million deal last year including the Watsons Bay Hotel in Sydney.
However, the rest of his holdings will now be put under administration with Adam Farnsworth, of Farnsworth Carson, appointed as administrator.
Farnsworth reported to creditors that The Sydney Collective owes the Australian Taxation Office $1.08 million and assorted trade creditors $297,909.
The Collective owes $4.41 million to the Warwick and Yates Trust, which is linked to the Short family.
According to the report lodged with the Australian Securities and Investment Commission (ASIC), the company’s assets include a $70,000 Tesla X and a $500 trading account.
Short purchased a $8.75 million, three-level harbour-front mansion in Sydney’s Vaucluse in 2016.
The Sydney Collective faced controversy in 2021, when it was accused by the United Workers Union of underpaying workers at its Watsons Bay Hotel.
“I worked there as a chef for four years and I would often work 60 hours a week, and many of those hours were unpaid,” said one employee.
The Sydney Collective apologised for its indiscretions and paid three employees outstanding amounts, including superannuation and accrued annual leave.
The Short family has a rich history in hospitality with Fraser’s father Warwick owning and operating a string of pubs including the The Stoned Crow, Woolloomooloo Bay Hotel, The Marlborough in Newtown, The Racecourse Hotel in Randwick, and Scubar Downunder in Sydney Central.
The family’s holdings, which are unrelated to Fraser Short, include The Australian Heritage Hotel and The Glenmore in The Rocks, The Royal in Leichhardt, The Tudor in Redfern, Toormina Hotel in Coffs Harbour, Misfits at The Redfern, The Sawtell Hotel in Sawtell and Moonee Beach Hotel in Moonee Beach.
It is expected that the hospitality industry will see more insolvencies occur through 202
Jonathan Jackson, 17th January 2024
