Melbourne-based hotel group Cornerstone Hotels has been placed in receivership.
The group, which operates 15 high-profiled hotels in Melbourne including music venue The Tote in the suburb of Collingwood and The Botanical in South Yarra, had quickly built a portfolio of pubs during a three-year buying binge.
John Lindholm and Peter McCluskey of Ferrier Hodgson have been appointed receivers. They say it will be "business as usual" while they examine the company's financial affairs and search for a buyer or buyers.
"Once we have a clearer understanding of how the group has been performing we will be in a better position to make decisions about its future," Lindholm says.
"Certainly, we will be looking to ensure the group is well positioned to trade into the future."
He said one possible course of action would be to seek a buyer or buyers for some of the hotels "as part of a restructuring to ensure the group continues with a portfolio capable of sustained growth and profitability".
The group owns hotels including the Great Northern in Carlton, The Inkerman Hotel in St Kilda and The Half Moon Hotel in Brighton. It is backed by private equity firm Blackwood Capital Partners and run by Ben Niall.
Niall did not return calls at the time of publication.
Cornerstone has been trying to sell a number of hotels in Melbourne in recent weeks. The Tote was passed in at auction in early March, while the group has also been trying to sell properties in Port Melbourne, Richmond, Melton, and the inner north.
The group ran into further trouble last week when its hotel in the regional Victorian town of Ballarat, the Bended Elbow, was kicked out of its premises by its landlord after allegedly breaching the terms of its lease.
According to a report in Ballarat's The Courier, the building's owner, Ballar Property Trust, tore up its 10-year lease with Cornerstone, alleging the company has breached three parts of its lease. The Bended Elbow opted to close its doors on 23 December until the issues were resolved.
Late last year the company sold The Metropolitan hotel in Melbourne's CBD.
