Upmarket Keystone Hospitality Group restaurants set for sale
The operator of Jamie's Italian restaurants across Australia and many other well known dining establishments has gone into receivership after failing to negotiate continued lending arrangements with its financiers, KKR and Olympus Capital.
Ferrier Hodgson's Morgan Kelly and Ryan Eagle have been appointed receivers and managers to the Keystone Hospitality Group, which is owned by a group of private Sydney investors.
The venues will be sold off.
"The venues in the Keystone Group comprise some of the most iconic and well-known brands in their respective markets," Morgan Kelly said.
"The sale of the group represents a unique opportunity for the right operator and is particularly suited to hospitality specialists interested in expansion."
Employees would continue on the same terms and conditions as prior to the appointment of the receivers for the time being.
The 17 restaurants include Bungalow 8, Cargo Bar, Chophouse Perth, Chophouse Sydney, Gazebo, Jamie's Italian Sydney, Jamie's Italian Perth, Jamie's Italian Canberra, Jamie's Italian Brisbane, Jamie's Italian Adelaide, Jamie's Italian Trattoria, Kingsleys Brisbane, Kingsleys Woolloomooloo, Manly Wine, Sugarmill Hotel, The Rook on York Street and The Winery in Potts Point.
Last night Keystone executive Richard Facioni and MD John Duncan issued a statement saying the business was “operationally strong”, with more than 1,000 employees nationally, but blamed debt used to expand the business, as well as Sydney’s lockout laws, for the failure of the group.
In March, Keystone put the the business it all started with 16 years ago, Cargo Bar, at Sydney’s King Street Wharf, on the market through Ray White Hotels saying it was shifting towards more food-focused ventures.
But a buyer had yet to be found for the Cargo Bar.
John Duncan told The Shout website that the lockout laws had not influenced the group’s decision to list the Cargo Bar as the venue had continued to trade strongly and the recent development of Barangaroo was great for the area.
Their earlier sale of the Newtown Hotel was due to an unsolicited approach from another hotel group.
“The sale process is expected to commence shortly,” Mr Kelly said.
