The latest intervention by officials from the Australian Taxation Office (ATO) could risk upsetting Jon Adgemis’ attempts to secure a $500 million debt deal for his Public Hospitality Group (PHG) empire.
According to The Australian Financial Review, tax officials visited Adgemis’ home and the PHG offices on Tuesday. The ATO declined to comment on the reasons for its visit.
A spokesman for PHG denied it was a raid.
“There was no ‘raid’… this was an access visit by the ATO seeking documents that had been requested. Public missed the deadline to provide such documents,” the spokesman told The Australian Financial Review, adding the company regretted missing this deadline.
“ATO staff were freely allowed into the property… however, Public did have the right to refuse entry, which they did not invoke.”
Adgemis’ hospitality group encompasses about 20 venues which spans from Guy Grossi’s Puttanesca Osteria in Melbourne to The Strand Hotel in the Sydney CBD. In January 2024, PHG also acquired Sydney-based Greek restaurant, Alpha.
His project started to fray after he took on hundreds of millions in debt at high interest rates from a variety of lenders just before financing costs rose.
The ATO’s visit comes amid concerns over the viability of Adgemis’ pubs group, with the pub baron looking to nail down a $500 million debt deal with Deutsche Bank and private credit provider Gemi Investments.
Source: The Australian Financial Review.
