Jon Adgemis’ Public Hospitality Group has appointed insolvency specialists Vaughan Strawbridge and Joseph Hansell of FTI Consulting as Receivers and Managers to five of its venues, marking a continuation of its ongoing economic woes. The list of impacted venues includes The Strand Hotel, Camelia Grove Hotel, Norfolk Hotel, Oxford House and the Exchange Hotel.
Strawbridge and Hansell are currently working with venue management to ensure that operations at the five pubs remain uninterrupted while they seek out new owners.
“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,” said Strawbridge.
“We expect a lot of interest in these venues and will work closely with venue management to achieve a successful outcome.”
The appointment of receivers and managers for these venues follows on from US-based private credit investor Muzinich & Co backing out of a deal to refinance the company’s growing debt. Muzinich currently holds more than $100 million of Public Hospitality’s debt, spread across the five venues put into receivership. Public Hospitality’s other seven pubs will not be affected by Muzinich’s decision to back out as the Group’s assets are split across three pools of funding.
This week’s news follows on from other recent major announcements made by the debt-riddled company. In late July, the Group procured officially completed this $400 million refinancing deal with a consortium led by Deutsche Bank.
Shortly prior to this in mid July, Public Hospitality parted ways with The Maybe Group, after acquiring it in April of last year. Following the separation, The Maybe Group announced that it will maintain full ownership and operation of The Maybe Group venues Maybe Sammy and Maybe Frank, along with transitioning into full ownership of El Primo Sanchez, the tequila bar it launched in collaboration with Public Hospitality, via a license agreement.
Maybe Group Co-Founder Vince Lombardo said, “Stef and I believe we can best serve our venues by bringing them back under The Maybe Group’s wing, and Jon has supported us in this decision.”
Stefano Catino, fellow Co-Founder, added, “although Maybe Sammy and Maybe Frank have been under the Public umbrella for the last year or so, we have continued to operate them as our own so there will be no change to the guest experience in those venues or El Primo Sanchez as a result of this transition.”
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