Beleaguered former Sydney pub baron, Jon Agdemis has declared bankruptcy after the collapse of his Public Hospitality pub group, owing creditors and suppliers over $1.8bn.
The move comes after five Sydney more pubs and accommodation venues were place into receivership earlier this week.
In statement about the bankruptcy Agdemis said he took full responsibility for the collapse of Public and “the position that has been reached”.
He added: “I am deeply disappointed that my broader vision for the group did not come to fruition, and that, despite sustained efforts, I was unable to deliver a better outcome for creditors.
“The collapse of the restructuring process means that arrangements intended to benefit creditors, including employees, could not be completed.
“I accept the process now in place, I accept the trustee’s appointment, and I will co-operate fully so the process can run its course.”
Agdemis said he had been working to secure a Personal Insolvency Agreement (PIA) to try and stave off bankruptcy, but that process triggered the expiry of a loan agreement for the five pubs.
Earlier this week Australian Hotelier reported that McGrathNicol Restructuring announced the appointment of partners Jonathan Henry, Damien Pafield and Katherine Sozou as receivers and managers of the Empire Hotel, the Hotel Diplomat Sydney, the Exchange Hotel, Claridge House and South Bondi Hotel.
While Public Hospitality and its creditors are the landlords of both the Empire Hotel in Annandale and Hotel Diplomat Sydney in Potts Point – formerly Bayswater Sydney Hotel, the two venues have more recently been operated by Linchpin Hospitality.
The Empire Hotel features a bar, two food concepts – Dale’s Pizza and newly-launched Australian-Chinese restaurant Double Happy, 19 gaming machine entitlements and a 21-room boutique accommodation offering. Hotel Diplomat Sydney also offers a boutique accommodation offering comprising 51 rooms, plus on-street food and beverage opportunity.
In a statement to Australian Hotelier at the time of the Double Happy unveiling in February, Linchpin Hospitality CEO Terry Soukoulis stated: “There has been a lot of incorrect reporting. Linchpin Hospitality is an entirely separate company with absolutely no operational connection to Jon Adgemis or Public Hospitality. We are a dedicated hospitality management company that operates and provides services to venues and accommodation on behalf of landlords and owners.”
The receivers will commence an immediate sale process for the Empire Hotel and Hotel Diplomat Sydney while continuing to operate both venues on a business-as-usual basis.
Linchpin Hospitality had also shared plans to reopen the Exchange Hotel in Balmain as a ground-floor wine bar with boutique accommodation; Claridge House in Darlinghurst as a boutique hotel with a ground-floor dining/drinking venue; and the South Bondi Hotel (formerly Noah’s Backpackers) as a luxury boutique hotel with multiple dining options, including a rooftop.
All three assets are currently under construction, and the receivers intend to continue construction of the Exchange Hotel and Claridge House with a view to progressing the works before bringing both assets to market early next year.
Development plans for the South Bondi Hotel – which was acquired by Public Hospitality in 2022 for $68.5m – could come to a halt as the receivers explore options for the venue with intentions to bring it to market later in the year, or early 2026.
McGrathNicol partner and appointed receiver and manager, Jonathan Henry, said: “The receivers’ have secured funding to support their strategy and are focused on working constructively with all key stakeholders, including employees, patrons, suppliers and subcontractors to continue trading and constructing venues to maximise value. We are actively pursuing options for the sales process and anticipate a high level of interest in these iconic Sydney venues.”
Public Hospitality Group’s financial struggle was first made public in mid-2024, when months of speculation about its finances culminated in a $400 million refinancing deal with KPMG and the placement of several venues into receivership.
Since then, the Kurrajong Hotel in Erskineville, the Rose, Shamrock and Thistle in Paddington – also known as the Three Weeds – and the Town Hall Hotel in Balmain have all been sold on behalf of receivers looking after Public Hospitality assets. Meanwhile, Solotel has taken over the management of The Norfolk in Redfern, Oxford House in Paddington and Camelia Grove Hotel in Alexandria, and The Strand Hotel in Darlinghurst.