In this frank episode of The PAX Hospitality Podcast, host Leon Kennedy sits down with Phillip Spry (Director, Mawson)to demystify what happens when a venue slides from strain to financial distress—and how to avoid becoming part of the predicted contraction. Rather than fear, the focus is clarity: a plain-English definition of insolvency (“can’t pay debts when they’re due”), the day-one reality of administration (what administrators actually do, when trading can continue, and why preparation matters), and the habits that quietly tip operators over the edge—thin margins, vanity metrics, and hope-as-a-plan. Philip walks through the single most powerful tool owners ignore: a rolling 13–16 week cashflow runway that shows when the cliff arrives and which levers (creditor terms, cost cuts, capital) could bridge it. The conversation also covers staff entitlements, creditor negotiations, and why character and communication often decide whether suppliers back you. Finally, Leon and Philip map life after crisis—how some founders come back sharper and more disciplined, and why the goal isn’t just survival but a cleaner, more sustainable business on the other side.Topics Covered:What insolvency really means in plain language — and why “can’t pay debts when they’re due” is both simple and dangerously vagueHow administration works day-to-day, from the moment an administrator steps in to what it takes to keep tradingThe common triggers in hospitality that tip venues over the edge — from seasonality and thin margins to vanity metrics that hide deeper issuesWhy a cashflow runway is the single best diagnostic tool for whether you can trade out, restructure, or need outside helpHow to think about life after crisis — postmortems, reinvention, and why some operators emerge sharper, more disciplined, and more sustainableThe PAX Hospitality Podcast is produced by PAX and Craate Creative. Support for this podcast comes from Square and Brunswick Design and Innovation. Our music is produced by Patricia Heath and Mattias Westergren. PAX acknowledges the Wurundjeri Woi-wurrung people as the traditional custodians of the land on which we operate. We pay our respects to elders past, present and emerging and to all First Nations People.

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