Sydney pub baron Jon Adgemis’ business empire is under further strain after a key company, Public Hospitality Operating Co, collapsed into liquidation owing $123 million to the tax office, with liquidators unable to locate assets once valued at more than $1.29 billion.
Liquidator Tim Cook of Balance Insolvency said records explaining the purpose of the debt or substantiating previously declared assets were missing.
He reported “some evidence to suggest that the company traded whilst insolvent,” though Adgemis denies this.
At its peak, Adgemis’ Public Hospitality Group controlled 22 pubs and hotels across Sydney and Melbourne, backed by private lenders.
A separate bankruptcy report shows he owes $1.8 billion in debts and personal guarantees.
Cook said the company’s collapse likely stemmed from “poor financial control including lack of records, the failure of entities previously controlled by the director (and) noncompliance with statutory obligations.”
Adgemis, who lives in a $60,000-a-month Bondi penthouse, has not responded to requests for records.
The collapse comes as lenders continue seizing his venues, including the $20 million Kurrajong Hotel in Erskineville, and as liquidators investigate allegations of a $300 million GST fraud scheme, which Adgemis denies.
He is seeking creditor approval for a personal insolvency agreement to avoid bankruptcy, with the ATO claiming $162 million in debts.
Source: Daily Telegraph.
