Companies behind two of Jon Adgemis’ Sydney hotels have been placed into external administration, according to The Australian.
The latest move by at least one of the small financiers owed money by Adgemis’ Public Hospitality Group (PHG) could potentially jeopardise a significant $400 million debt restructuring for his embattled pub empire.
According to documents filed with the Australian Securities and Investments Commission (ASIC) Register, The Oxford Rose Pty Ltd and 106 Swanson Street Pty Ltd have been placed into external administration. The entities are linked to The Rose Hotel on Oxford St in Paddington and the Kurrajong Hotel in Erskineville respectively.
Insolvency and advisory firm Ankura is working as the external administrator on the entities. It is believed that lenders are owed money in the tens of millions of dollars.
This comes after Adgemis struck a $400 million refinancing deal in May 2024 with Deutsche Bank, Gemi Investments, Archibald Capital and Muzinich & Co, to save his PHG from collapse.
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.
Earlier this week, operations at the Hellenic Club of Sydney’s Alpha restaurant and Beta Events were also taken over by Con Dedes of Dedes Waterfront Group after PHG made a swift exit.
The pub group took over business activities of Alpha and Beta Events in early January. 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.
At the time, Hellenic Club of Sydney members and the wider Greek community raised concerns to The Greek Herald about the future of Alpha and Beta Events, questioning the selection of Adgemis’ PHG over competitors such as the Dedes Waterfront Group, and expressing unease about the club’s financial stability as well as the potential impact on its activities and reputation.
The new management by Con Dedes has been welcomed news for the local Greek community.
READ MORE: Hellenic Club of Sydney venues under new management as Adgemis’ embattled pub group exits