Albion Hotel in John Street was closed for business today and has been placed in voluntary liquidation by Jirsch Sutherland - a specialist insolvency company.
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Jirsch Sutherland partner Lloyd Kerr said the problems with the family owned business was due entirely to the downturn in the mining industry.
"If the hotel had the same turnover it had three years ago it would not be in this situation," he said.
Mr Kerr said the hotel, which had been on the market, would be closed for the foreseeable future.
He estimated 12 employees would be affected by its closure.
Owned by a locally based company Happiley Pty Ltd Mr Kerr said the business was now realistically controlled by its bank - ANZ.
"Fortunately for the directors the ANZ have been very supportive," he said.
Mr Kerr said the hotel had been owned by the company for around five years.
Discussions between the bank and various parties are currently taking place to determine the future of the hotel, he said.
Its been a tough week locally with BHP Billiton announcing yesterday it would cut its workforce at its Mt Arthur mine by a further 150 employees.
And on Friday last week 39 staff at the Redbank power station lost of their positions.
