The building was first mentioned in the archives in 1503 and served as a coaching inn for generations. It is thought to be the oldest licensed premises in York. The inn gets its present name and distinctive sign from The Merchant Adventurers who owned it and who were responsible for the burgeoning woollen trade. The yard at the rear is named after Lady Alice Peckett, whose husband John was the Lord Mayor of York and also owned this historic inn around 1702. The cellar was once used to store the bodies of people hung at Bale Hill before their families came to claim them. During WWII a Canadian Airman is known to have died here but it is unclear exaclty how he passed. Paranormal visitors include 'One Eyed Jack', a 16th century man who paces the lower bar area, while the top bar plays host to the ghost of a young Victorian boy believed to have been trampled to death. The ghost of an old lady has been seen in both the Shambles Room and Lady Peckett's Room, while a younger lady dressed in black has been seen walking past the window inside St. Catherine's Room which is said to house an unnaturally oppressive feeling.