The party is winding down for Jon Adgemis’ Public Hospitality Group (PHG), as a major lender calls in receivers and managers on five venues in the collection.
Last week FTI Consulting’s Vaughan Strawbridge and Joseph Hansell stepped in, under security held by TREA ST Pty Ltd as trustee of the Public Group Security Trust.
BDO’s Duncan Club and Andrew Sallway were also appointed voluntary administrators of some of the entities.
Taken back were four trading venues – Oxford House in Paddington, The Norfolk in Redfern, the Camelia Grove Hotel in Alexandria, and The Strand in Darlinghurst – as well as the nearby Exchange Hotel, under redevelopment.
Schedule 1 outlined Public Hospitality Group Finance P/L and Public Lifestyle Management and Lifestyle Accommodation P/Ls, and affiliated companies including the dormant Lady Hampshire Operations P/L.
The receivers are said to be coordinating with existing staff to continue business at the four trading venues while they plan a sale campaign on the assets, which is expected to commence shortly, with FTI anticipating “a lot of interest”.
“We will be working closely with management of the venues to ensure they continue uninterrupted by this process while we seek new owners for the venues to secure their future,” offered Strawbridge.
PHG counts 17 pubs and hotels, and these five represent another lost slice of the pie, adding to the loss of the Rose and Kurrajong hotels to administrators, and forced sale of El Primo Sanchez (the former Rose Shamrock & Thistle) in Darlinghurst.
The group also went through a public split with award-winning bar legends Maybe Sammy.
In May PHG appeared to be fighting back when it landed a long-awaited $400-plus million refinance deal, which the AFR reported included over $100 million provided by New York-based Muzinich & Co, taking over debt previously shared with Deutsche Bank on the five Sydney pubs plus their operating company.
According to sources, Muzinich & Co tapped the receivers after talks with other lenders broke down, over additional funds to be injected to pay staff and suppliers.
At this stage Public’s other assets remain unaffected, including the Lady Hampshire in Camperdown.
But questions remain on the fate of staff and suppliers, with many said to be chasing monies from one or more of the fallen venues and uncertain of their place at the distribution table.
A creditors’ meeting is due to be held 21 October.
