Creditors back $850k rescue deal to save iconic Royal Hotel from liquidation

An iconic Perth CBD pub has been given a lifeline after creditors accepted an $850,000 deal to save it from liquidation.

John Parker is the businessman behind the Parker Group, which operates popular fine dining hospitality venues including The Royal Hotel, Busselton Pavilion and Ciao Dandy in Karrinyup.

His pub and restaurant empire was thrown into uncertainty last month when administrators took control of the companies behind all three venues.

On Thursday morning, creditors of Wellington Pty Ltd, the company behind the Royal Hotel, approved a rescue proposal put forward by the Parker Group.

The deal means the central pub, built in 1882 on the corner of William and Wellington Streets, will continue trading.

Administrators Jack James and Paula Smith, from Rodgers Reidy, estimate the company owes about $3m. The tax office is the main creditor, with administrators estimating it is owed $2.4m.

In a report filed on September 10, James and Smith said creditors would have got nothing if the company was liquidated. Under the new deal, they are expected to receive 22 cents for every dollar they are owed.

In the same report, administrators found “there was a strong indicator” the company was insolvent from at least January 2024, with about $2.2m in debt potentially occurring after that month.

“We consider there may be a claim against the director for insolvent trading available to a liquidator,” the report states.

But, they said Parker would likely not have the funds if pursued.

“It would indicate that the (Parker) would not have the financial capacity to meet a judgement debt (if successful),” the report said.

The report stated a liquidator could have continued the investigation and sought legal advice in pursuing action against Parker.

Busselton Pavilion and Ciao Dandy remain in separate voluntary administration.

This masthead has contacted Wellington Pty Ltd, The Parker Group and Rodgers Reidy for comment.