Turbulence continues for Jon Adgemis’ Public Hospitality group, with the Love Tilly Group calling no joy on their foodservice partnership.

In April this year Fabbrica Pasta Bar opened within Public’s Exchange Hotel in Balmain, and has quickly gained acclaim and popularity.

Love Tilly Group is best known for chic wine bar Love Tilly Devine in Darlinghurst, but also for Fabbrica in the CBD, Ragazzi, Dear Sainte Éloise, and Palazzo Salato.

Group MD Matthew Swieboda said in a statement the decision to split was a “devastatingly” difficult one to make.

“But for the benefit of the staff and the suppliers, we can no longer, in good faith, continue to run our venues together with Public Hospitality.”

Public bought the Empire Hotel in Annandale from Oscars in 2021, and in the process of revamping it as The Federal has been planning another Fabbrica Pasta Bar, but the news means that will no longer go ahead.

Public has exhibited rapid expansion in Sydney and more recently Victoria, amassing more than a dozen Sydney pubs over a couple of years, and earlier this year taking the award-winning Maybe Group, creators of cocktail bars Maybe Sammy and Maybe Frank.

And in its debut into Victoria, Public took the Saint Hotel and the Clifton Hotel in Kew, which is currently the subject of an investigation by the VGCCC.

The AFR has reported the group’s activities have generated cynicism amongst investment circles, with the fund said to be hurting under the weight of more than $500 million of short-term debt, accruing over $1.5 million in interest each week.

The Balmain instalment of Fabbrica Pasta Bar has closed, but Love Tilly Group says it plans to open more outlets independently.

Public currently lists 14 hospitality businesses on its website, and said in a statement it is disappointed to have been informed of the Love Tilly Group decision, having understood “disputed commercial matters” to have been progressing.

“Consistent with Public’s strategy of owning and operating strong hospitality brands, Public purchased the La Salut brand in 2022 and will continue to operate at The Norfolk in Redfern, including offering employment for existing staff.”

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