Members of the Hellenic Club of Sydney and wider Greek community have voiced concerns over the future of its operations since it was taken over by Jon Adgemis’ debt-ridden Public Hospitality Group (PHG) in 2024.
PHG took over business activities of the Hellenic Club of Sydney’s Alpha and Beta venues in early January. According to The Greek Herald‘s sources, Adgemis’ pub group trumped competitors such as the Dedes Waterfront Group and the Doltone House Group.
Former MasterChef judge and chef George Calombaris also moved into the kitchen at Alpha in March 2024, taking the reins from Alpha’s founding chef, Peter Conistis, who fronted the venue since its opening in 2013.
This takeover came despite PHG being weighed down by $500 million debt at the time. Adgemis’ 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.
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 in early May 2024.
Last week, it was reported that Adgemis struck a $400 million refinancing deal with Deutsche Bank, Gemi Investments, Archibald Capital and Muzinich & Co, to save his PHG from collapse.
The funding will be used to pay staff, suppliers, and creditors, and lenders will be the ones to appoint a new general manager with hospitality industry experience to manage the group’s venues. Adgemis will stay on as executive chairman.
But as the $400 million refinancing deal won’t cover the extent of Adgemis’ $500 million debt, further property sales are expected.
Club members and the wider Greek community have questioned the selection of Adgemis’ PHG over competitors, expressing concerns about the club’s financial stability as well as the potential impact on its activities and reputation.
The Greek Herald has contacted the President of the Hellenic Club of Sydney for comment on the future of the business, but there was no response at the time of publication.
