Keystone goes bust
The company that runs popular restaurants and pubs across Sydney, including Jamie’s Italian, has been put into receivership
The Keystone Hospitality Group, which runs 17 places across Australia and employs 1200 people has gone into receivership because of mounting debts. International lenders had been expecting to be repaid $25 million due tomorrow.
Its lenders, American private equity giant KKR and Singapore-based private equity outfit Olympus, which was owed almost $80 million, have appointed Ferrier Hodgson as administrators. Morgan Kelly and Ryan Eagle of Ferrier Hodgson have been appointed as external managers.
Restaurants in the Keystone stable include the Chophouse in Sydney and Perth, as well as Sydney's Bungalow 8, Cargo Bar, The Sugarmill Hotel and Gazebo in Kings Cross, Manly Bar and Kingsley's Woolloomooloo and Jamie's Italian restaurants in Sydney, Canberra, Brisbane, Adelaide and Perth.
The company, which was founded in 2000 with the opening of the Cargo Bar at Sydney's King Street Wharf, was until recently run by Southern Cross Austereo boss Grant Blackley. It is now run by investment banker and shareholder Richard Facioni.
In a statement, Ferrier Hodgson said the appointment had been made by a “syndicate of lenders”.
It said the lenders were unable to “reach agreement with the [Keystone Group] board on key aspects of the Keystone Groups’ financial structure”.
The receivers would now review each venue and prepare for a sales campaign which they said would commence soon.
They said options include selling the group off in its entirety or selling venues individually.
“Given the current buoyant hospitality market we anticipate a lot of interest in the sale of the venues,” receiver Morgan Kelly said in the statement.
“The venues in the Keystone Group comprise some of the most iconic and well-known brands in their respective markets.
“The sale of the group represents a unique opportunity for the right operator and is particularly suited to hospitality specialists interested in expansion.”
by Leon Gettler, June 29th 2016
