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Image for The Sando placed in receivership

The Sando placed inreceivership

Sydney’s Sandringham Hotel – the beloved Sando – has been placed in receivership with debts of $3.6 million.

The owner of the venue for the past seven years, Tony Townsend, says that he had been hoping to refinance the hotel and had been trying varied options to hold onto the business for the past year – including a failed bid to sell the building and lease it back.

According to Townsend the first he knew of the bank’s plans came at midday yesterday when the men in suits arrived with the paperwork. ‘’They didn’t even call me, they just walked in. No warning, no nothing,’’ he told the Sydney Morning Herald.

‘’It’s sad – it’s sad for live music, it’s sad for me personally it’s sad for my family,’’ he said. ‘’This was supposed to be not only a legacy for us but, I guess, our income in retirement. And that whole dream’s gone… ‘We’ve taken it from one or two shows a week to quite proudly 120 bands a month,’’ he said. ‘’We’re only small but we’re I guess the biggest little rock venue in Sydney.’’

Morgan Kelly, of receivers Ferrier Hodgson, says that the Sando as a live music venue for the foreseeable future. “I will be conducting an urgent assessment of operations and considering the best options for taking the business to market,” Mr Kelly said. “We’ll have a better understanding of the market’s appetite for this asset in coming weeks.”


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normnank

normnank said on the 10th Jul, 2012

really sad that it is closing - its a great venue. but how do the owners let themselves get into 3.6 mil worth of debt? they should really take some responsibility for poor financial management. cant really blame the bank for wanting their debts back. who knows who else they owe money too also - might be bands, suppliers, staff etc?? would have been nice if the article acknowledged this

BrendanMaclean

BrendanMaclean said on the 10th Jul, 2012

well that's tony gets for constantly being an arse about every band that have ever stepped in the venue.

he slags bands off in media, he slaps on ridiculous fees - it was a pathetic way to run a music venue. seeya later alligator.

Braveheart81

Braveheart81 said on the 10th Jul, 2012



That is something that wouldn't be publically availably information.

The secured mortgage(s) over the property and/or charges over the business would however be information that a journo could obtain.

normnank

normnank said on the 10th Jul, 2012

"men in suits came without warning" - pretty ignorant of the owner to expect that when you are defaulting on your repayments of $48,000 a month and owe someone 3.6 million in principal that no one is going to just let that keep happening. the bank has a responsibility to its shareholders to stop financial mismanagement like this. hopefully the venue is sold to someone who knows how to run a business and manage cash flows. calling them 'men in suits' is pretty close minded and derogatory. as good as this venue is - its unreasonable to expect that government would fund venues like this when we have much more pressing issues in society (hospitals, refugees etc) to fund.

crob

crob said on the 10th Jul, 2012

oh no, this means the bikers are going to relocate to my preciousss townie

Braveheart81

Braveheart81 said on the 10th Jul, 2012



You've pretty much doubled the likely interest rate.

It's impossible to say whether they defaulted on their loan at this stage. It may just be that the term of the loan came to an end and the bank didn't want to refinance it.

As the business doesn't have $3.6m to repay the principal, receivers have to be appointed.