The property on which the Arcade was built was the scene of two disastrous fires: the first was
George Debney's fine furniture factory and showrooms at 103–105
Rundle Street (parts of Section 84 and 85), which was destroyed, along with a great deal of stock and raw material, on the evening of 16 July 1855.
Patrick Gay, who had been working for Debney, took over the business in 1867. He also took over the cabinetmaking business next door, owned by his father, also named Patrick Gay. In 1880 the warehouse had a 52 ft frontage to Rundle Street and extended halfway to
Grenfell Street. The rear half, which Gay had enlarged to three storeys, extended to Twin street, so the property was L-shaped, the remaining portion at the corner of Twin and Rundle streets being occupied by James Calder's City Steam Biscuit Factory. The premises were completely destroyed by fire on Saturday 15 November 1884. The shop had been closed around 2:30 pm, and first signs of smoke noticed around 9 pm, and a fire hose deployed around 10. Without any evidence, the newspapers assumed arson ("incendiarists"), perhaps thinking of a disgruntled ex-employee, as Gay had the previous year sacked some of his work-force in response to the economic downturn, and those remaining were on short hours. Though it was conceivable that someone in
Baker & Chambers' Sturt Stables, between the rear of Gay's factory and Grenfell Street could have been responsible, there was no evidence to support arson. All witnesses insisted Gay maintained good relations with all employees, past and present, and there was no enmity between his English and German workmen, who were on equal pay rates. The insurance payout was enough to start again, but insufficient to cover losses.
Adelaide Arcade A Syndicate was formed consisting largely of
Emanuel Cohen,
J. M. Wendt, Patrick Gay,
Saul Solomon, and
L. H. Berens to erect a shopping arcade linking Rundle and Grenfell streets, the largest in the Southern Hemisphere.
Withall & Wells were selected as architects and
W. Pett and Son as contractors. :In 1885
F. J. Beck & Co. purchased both
Baker & Chambers' property, "Sturt Horse Bazaar" and Debney's land, the site of Gay's burnt-out furniture factory, to lease to the proponents of the Arcade. (The Rundle Street end consisted of two portions of sections 84 and 85, each of 53 ft 9 ins frontage, the eastern portion previously owned by Debney and leased to Gay.) Baker & Chambers moved their business to
Currie Street, previously the John Bull Livery Stables. :In September 1885 F. J. Beck offered 50 year leases on two Grenfell Street properties not needed for the Arcades: adjoining Twin Street and the other side of the Arcade. It would have a frontage of 77 feet to Rundle Street and 97 feet to Grenfell Street, Inside, the ceiling featured wide cornices constructed of moulded galvanized iron, and the upper cornices being surmounted by a deep cove finished with panelled soffit, returning down the cove and across the ceiling, which is broken up into a series of deeply recessed panelled bays, glazed with diapered and coloured glass. Additional sunlight was supplied by circular bullseye lights in alternate bays of the cove. Special attention was devoted to the lighting and ventilation, the latter provided by air tunnels and shafts connected with the towers. Lighting at night was provided by sixteen
Siemens arc lamps, each fitting having six carbon electrodes requiring replacement after 18 hours' service, and the foundation stone laid by Mayor Bundey on 6 May 1885. Shareholders in addition to directors Solomon, Wendt, Cohen, Gay and Berens were Robert Carr Castle and Hermann Carl Koeppen Wendt. Defying the sceptics, the building was opened on Saturday 12 December 1885 by the Governor Sir
William Robinson. It would have been completed by the promised date of 1 December but for late delivery of some imported items. The quantity of glass involved was prodigious: , of which more than was polished plate glass. The Arcade was built at a time of an economic downturn, and great difficulty was had in attracting paying tenants. A year's rent holiday was offered to suitable clients. Return on capital was so low that one-by-one the various subscribers relinquished their shares to Wendt, who by 1906 was the sole owner. Other accounts have the company going into liquidation and the assets being purchased by Wendt from the liquidator.
Gay's Arcade The Adelaide Arcade construction was well underway when a separate, though connected, venture was embarked on: a short arcade of similar design, between Twin Street and Adelaide Arcade close to its centre. In August 1885, just a few months after engaging architect and builder for the Adelaide Arcade, a different architect, James Cumming (c. 1825–1901), and contractor, Nicholas Wallis Trudgen (c. 1829–1892) were engaged for the extension, to be named Gay's Arcade. Gay's Arcade as designed had a frontage of to Twin Street and a depth of to Adelaide Arcade. The building on Twin Street would have three storeys, plus cellars, with five shops on the ground floor, with Gay's furniture store and workshops on the two upper floors. The passage through this building then opens up into an arcade of two storeys containing twelve shops, having carved wooden frames for plate-glass windows, all very similar to the Adelaide Arcade. The fronts of these shops to be chiefly plate-glass, with light wooden frames enclosed in ornamental cast-iron work. The roof would be of glass in metal sashes, with ample provision for ventilation, and the walkway paved with encaustic tiles, marble, and Mintaro slate. Where lighting in the main arcade was to be electric arc-lamps, in Gay's Arcade it would be by
"Wenham" gas-lights, a recent innovation. This emphasis on lighting was a result of insistence by insurance companies that gas lighting for drapers shops' displays be outside the windows, another impetus for incandescent electric lighting, which became general around 1900. Gay was to occupy the two upper floors of the block building and one side of the arcade. As there is a right-of-way along the north side of the building, and a light court was reserved on the south side, adequate natural light was provided, and the shops had back entrances. "Wenham" gaslights were provided for illumination of the arcade in the evening. ==Later history==