By James Atkinson

Corporate insolvency firm Grant Thornton expects strong interest in the Sydney pubs owned by Damian Silk, which have gone into receivership this week.

Grant Thornton partner Said Jahani told TheShout that at this stage it's business as usual for the Welcome Hotel in Rozelle and the Australian Youth Hotel in Glebe, ahead of a sale campaign early in the new year.

He said the placing of the pubs into receivership had little to do with their performance, with both trading "quite well".

Rather, the situation had been brought about by escalating financial pressure on Silk after his brewing company, Australian Independent Brewers (AIB), was placed into receivership in July.

Jahani said the financier on AIB was also the pubs' second ranking creditor, and had been agitating for action to be taken on the pubs to make up a debt shortfall.

Bankwest subsequently foreclosed on the pubs, placing them in the hands of Grant Thornton on Monday.

Jahani told TheShout both pubs were of "A-Grade" standard and centred on food and beverage, limiting their exposure to the risks posed by mandatory pre-commitment on gaming machines.

He said the prospects of sale were strong, with cashed-up investors like advertising tycoon John Singleton on the lookout for quality assets.

"We've already had a number of enquiries from interested parties and we've only been involved for five minutes," he said.

Silk could not be contacted for comment.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

Leave a comment

Your email address will not be published. Required fields are marked *