After a turbulent year, and much scrutiny about the state of Public Hospitality’s finances, receivers and managers have been appointed to the group’s Sydney venues.
In late June, it was revealed that the group was undergoing a restructure after striking a new refinancing deal with Deutsche Bank and several investment firms for $400m, but it has not turned the company’s fortunes around.
Vaughan Strawbridge and Joseph Hansell of FTI Consulting were appointed as receivers and managers on 13 September to a number of Public Hospitality Group entities under security held by TREA ST Pty Ltd as trustee of the Public Group Security Trust. The appointment is over the four trading venues: The Strand Hotel; Camelia Grove Hotel; Norfolk Hotel; Oxford House; and one development site, the Exchange Hotel.
Additionally, Duncan Clubb and Andrew Sallway of BDO were appointed voluntary administrators of Public Lifestyle Management Pty Ltd; 146 Henderson Street Pty Ltd and Camelia Grove Operations Pty Ltd.
The Receivers are working with existing management and staff teams to continue to trade the venues while they commence a sale of business campaign.
“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,” stated Strawbridge.
“We expect a lot of interest in these venues and will work closely with venue management to achieve a successful outcome.”
A representative of a senior creditor told Australian Hotelier that after many months of patience and looking for alternatives, it was deemed time to call in receivers and recoup some of the debt owed.
The group’s financial problems were made public in late 2023, when Love Tilly Group announced it was ending its partnership with Public Hospitality Group “for the benefit of the staff and the suppliers.”
In July this year, the award-winning Maybe Group also announced the end to its partnership with Public Hospitality, with the ownership and operations of bars Maybe Sammy and Maybe Frank remaining with Maybe Group, while El Primo Sanchez would transition from Public to Maybe Group through a license agreement.
Australian Hotelier has reached out to Public Hospitality’s management and media teams for comment, but had not heard back at time of publication. We will continue to bring you updates as the story unfolds.