Colac Bay Tavern, near Invercargill, had its applications for new liquor licences declined over concerns which included the "unsanitary state" of an adjoining campground.
The campground was ordered to be cleaned, and a car sales business operating from the tavern’s carpark was also cited as an issue by Southland’s district licensing committee.
Owner Rajesh Batra, who bought the tavern in February last year, confirmed it had not been selling alcohol since the committee’s decision in February this year and it had since been placed on the market.
"[The] committee did not leave any [other] option for myself other than to sell the business and property," Mr Batra said yesterday.
Patrons reacted with dismay when the pub announced it was no longer serving alcohol in a social media post in March.
One commenter said the cleanliness was "totally the pits".
"They should lock its doors and sell to someone who actually knows what [they’re] doing."
Another said a urinal in the men’s toilet smelled "putrid".
Others said the new ownership had done "a real disservice" to locals and out-of-towners, and they had "never seen a business go down the s...... in such record speed".
In its decision, committee chairman Paul Duffy said evidence was presented by Southland District Council licensing inspector Bernadette Paisley at a hearing in January that showed Mr Batra had "ongoing issues" with compliance.
That included the named duty manager not being on site on two occasions and the need for a "cleansing order" under the Health Act to have the associated campground brought up to an appropriate standard of cleanliness, Cr Duffy said.
The committee also heard from Dunedin City Council chief licensing inspector Tanya Morrison and Joanna Case of Immigration New Zealand.
They indicated Mr Batra had previously applied for liquor licenses in Dunedin which were opposed due to his suitability, but he had withdrawn the applications before they could go to hearing.
"Ms Tanya Morrison spoke about the flaws in the applications that were submitted to the council and Ms Joanna Case spoke to the applicant’s inability to obtain the correct visas and to comply with the accredited employer scheme."
The matters raised by both licensing inspectors highlighted a shortfall in systems and staff training regarding signage, keeping incident records and awareness of compliance requirements, Cr Duffy said.
"The breach of the Health Act related to the unsanitary state of the campground facilities that resulted in an order to clean being issued.
"A further legislative breach of the Southland District Plan regarding the location of the car sales business in the Colac Bay Tavern carpark was also noted."
Mr Batra believed the committee was "being biased" and had not made a fair decision on one of the applications.
Many of the compliance issues were first enforced after he took ownership, and compliance with new fire safety requirements had not been asked of any previous owners.
An infringement notice from Immigration New Zealand had been revoked, and he hoped that had been shared with the committee for future reference, Mr Batra said.
