Jon Adgemis has struck a $400 million refinancing deal with a consortium led by Deutsche Bank to save his Public Hospitality Group (PHG) from collapse.
According to The Australian Financial Review, Adgemis signed the long-awaited agreement with his major lenders, Deutsche Bank, Gemi Investments and Archibald Capital, this week.
Sources told the AFR the funding will be used to pay staff, suppliers, and creditors, and a new general manager with hospitality industry experience is expected to be appointed to manage the group’s venues. Adgemis will stay on as executive chairman.
Adgemis’ hospitality group encompasses about 20 venues which span 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.
PHG has become so weighed down by debt, some lenders started trying to sell off his properties, staff were left out of pocket and suppliers, were unpaid. The Australian Taxation Office also visited the pub group’s offices last week.
An earlier refinancing deal, with Bain Capital, fell over before it was finalised.
Source: The Australian Financial Review.
