Publican Jon Adgemis has declared bankruptcy, a day before the Australian Taxation Office was due to pursue him in court over a $162 million tax bill.
According to The Australian Financial Review, Adgemis said in a statement, “I take responsibility for the position that has been reached.” He also added he was “deeply disappointed” his vision for Public Hospitality Group did not come to fruition.
Adgemis built the group during the pandemic, amassing 22 pubs and development projects across Sydney and Melbourne, financed by short-term, high-interest debt. However, efforts to restructure collapsed, leaving hundreds of former employees and contractors unpaid.
“I accept the process now in place, I accept the trustee’s appointment, and I will co-operate fully, so the process can run its course,” he said.
Adgemis’ debts exceed $1.8 billion, largely tied to personal guarantees. Deutsche Bank, owed $371 million, has already taken control of five pubs, while Sydney-based Gemi Investments has exposure of more than $438 million.
The Australian Financial Security Authority raised concerns about Adgemis’ asset disclosures, while the ATO accused him of maintaining an “extravagant lifestyle” despite looming insolvency.
Documents suggest his companies may owe a further $300 million in tax, with allegations of improper GST claims under investigation; claims Adgemis denies.
Source: AFR.
