Like a pub where all the hard liquor's been drunk down (3,2,7)
I believe the answer is:
out of spirits
'down' is the definition.
(both can mean upset)
'like a pub where all the hard liquor's been drunk' is the wordplay.
I cannot quite understand how this works, but
'the' could be 't' (the is pronounced as a 't' sound in some dialects) and 't' is found within the answer.
'liquor's' could be 'spirits' ('spirits' can be a synonym of 'liquor') and 'spirits' is present in the answer.
This explanation may well be incorrect...
(Other definitions for out of spirits that I've seen before include "without whisky or rum" , "Feeling depressed" .)