The Maybe Group has announced the immediate termination of its partnership with debt-stricken Public Hospitality. Moving forwards, The Maybe Group will maintain full ownership and operation of The Maybe Group venues Maybe Sammy and Maybe Frank. It will also transition into full ownership of El Primo Sanchez, the tequila bar it launched in collaboration with Public Hospitality, via a license agreement.
This morning’s announcement follows on from Jon Adgemis’ Public Hospitality Group being forced to secure a $400 million refinancing deal towards the end of May.
“Stef[ano Catino] 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,” said Co-Founder Vince Lombardo.
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.”
Public Hospitality first acquired The Maybe Group in April of last year. The acquisition included both Maybe Frank and Maybe Sammy, the latter of which was named the 15th best bar globally in last year’s World’s 50 Best Bars awards, becoming Australia’s number one venue for the fifth time in the process. More recently, both El Primo Sanchez and Maybe Sammy were named among the world’s top 37 bars in the inaugural Pinnacle Guide awards.
Public Hospitality’s $400 million refinancing deal is being conducted through a consortium led by Deutsche Bank. According to an article published by the Australian Financial Review at the time, the deal was necessary to save the debt-stricken hospitality group from the brink of collapse. In addition to the refinancing, Public Hospitality’s owner Jon Adgemis will also be required to sell off a number of key assets. All accumulated funds “will be used to pay staff, suppliers, and creditors… [and] will not cover all the existing debt attached to his properties.”
It is expected that Public Hospitality will be forced to cull around eight brands from its portfolio. These will be placed in an equity fund controlled by Archibald Capital worth between $70-$80 million, in which Adjemis will remain a shareholder. A separate fund will also be installed to control Public Hospitality’s former Melbourne pub assets.
