Melbourne pub owner Cornerstone was placed into the hands of receivers this morning after failing to recover from a debt hangover - the product of a $65 million buying binge at the height of the boom.
The owner of 15 high-profile Victorian pubs - including the Botanical in South Yarra, High Moon in Brighton and the Great Northern in Carlton - has appointed Ferrier Hodgson Partners John Lindholm and Peter McCluskey to manage the groups' finances.
''It will be business as usual at the hotels while I examine the company's financial records,'' Mr Lindholm said.He said one option would be to sell some of the hotels as part of a restructuring.
The pub sector has been hit hard in recent years by new smoking and gaming laws, together with the credit crunch.
Values are estimated to have fallen about 25 per cent since the peak, and heavily indebted listed players including ING Real Estate Entertainment Fund and Hedley Leisure and Gaming Property Fund are threatening to flood the market with pubs for sale.
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