Jackson's on George hotel group under receivership control

Jackson's on George, owned by veteran publican Chris Crawley, was placed in receivership this week by its lenders.

Crawley attempted to sell the iconic drinking hole in mid-2011 when Property Observer reported potential buyers of the four-storey building tenanted by all-night Sydney drinking hole Jackson's on George were being enticed with the prospect of being part of a proposed new city square in the heart of the Sydney CBD.

The bar occupies the entire 485-square-metre site at 174 to 176a George Street in the Sydney CBD and is opposite the Four Seasons Hotel. It has occupied the site since 1987 and trades 24/7 except on Christmas and Good Friday.

The square, known as “APDG block”, is bordered by Alfred, Pitt, Dalley and George streets.

The hotel as owned by well-known Sydney publican Chris Crawley who has been caught in a  costly legal bill dispute.

All bar and management staff are continuing in their roles.

The building – constructed in 1975 – last changed hands for $14.5 million in 1989.

According to the 2011 investment report, the bar brings in income of about $1.5 million annually.

Mr Crawley's other hotels include The Belvedere Hotel in the CBD, and Cohibar and the Watershed Hotel, both in Darling Harbour are also now in receivership.

PPB Advisory was appointed on Tuesday as receivers for the J&J O'Brien group of companies by the ANZ bank.

PPB Advisory's Marcus Ayres and Stephen Parbery have been appointed as receivers and managers to the group and Quentin Olde and Michael Ryan of FTI Consulting have been appointed as administrators.

Ayres said it is still “very early days” in the receivership process and the receivers have not identified the cause of the group’s collapse.

“[J&J O’Brien] hasn’t complied with its banking requirements; it’s pretty hard to identify what is going on,” he says.

“We just want to keep everything running smoothly for the time being.”

In the meantime the receivers will continue to operate J&J O’Brien’s four venues.

“We are just making an assessment of the business and it is still business as usual but we will develop a strategy to put the assets on the market,” Ayres says.

He says the group had a turnover of $23 million last year and its major creditors are the breweries and ANZ bank.

“They are pretty substantial assets we just have to work out the best way to put them on the market,” he says.

A first meeting of creditors is scheduled for April 29.