Keystone restaurants on the market
Receivers have put the Jamie's Italian chain and other iconic eateries controlled by the collapsed Keystone Hospitality Group on the auction block.
The receivers have put 17 venues on the market.
Keystone is best known for being the company behind Jamie Oliver’s Jamie’s Italian restaurant chain and a string of top Sydney venues including Bungalow 8, Cargo Bar, and The Chophouse.
Owned by a group of private investors, Keystone’s lenders KKR and Olympus called in the receivers when they discovered that Keystone, led by executive chairman Richard Facioni, would not be able to make a $25 million debt repayment.
There are reports that 120 parties have expressed interest in the properties.
There sale process allows for a recapitalisation or a sale of one or more portfolios of assets.
The plan is to keep Jamie's Italian franchise restaurants will as a group, and sell it as a nationally integrated restaurant brand.
Keystone does not own any of the real estate.
The receivers and managers of the failed group are Ferrier Hodgson’s are Morgan Kelly and Ryan Eagle.
"We are conducting a focused sale strategy, specifically targeting buyers with the balance sheet strength and operational depth to be able to manage these acquisitions," Mr Kelly told the Australian Financial Review.
"The Sydney, Brisbane, Adelaide, Perth, Canberra and Parramatta Jamie's Italian restaurants are some of the best performing Jamie's Italian restaurants globally and offer a very attractive opportunity for the right partner," Mr Kelly said.
"We will continue to work closely with the Jamie Oliver Restaurant Group with a view to identifying a new partner for their business in Australia.
"This may be part of a whole of enterprise sale or as a separate portfolio."
He said all 17 venues are operating which means they will be offered to the market as a going concern.
"We are seeking a result before the commencement of the busy summer trade," he said.
by Leon Gettler, July 25th 2016
