This was published 7 years ago
Pub giant Keystone Group in receivership
By Carolyn Cummins
A fire sale of some of the best-known pubs and bars in Sydney, including Cargo Bar, Bungalow 8, the Winery, Gazebo and all of the Jamie's Italian outlets, is on the cards as the owner, Keystone Group, has been placed into the hands of receivers Ferrier Hodgson.
Although all the venues trade well, a syndicate of lenders, said to include the US giant KKR, has been unable to reach agreement with the board on key aspects of Keystone Group's financial structure.
While the Cargo Bar has been on the market since early March, last year Keystone, run by John Duncan, sold its Newtown Hotel, in Sydney to the Colonial Hotel Group and now the receivers will look to sell other venues including Kingsleys Woolloomooloo, Manly Wine, Sugarmill Hotel and The Rook, in a portfolio said to be worth more than $100 million.
The sale comes as other flagged pub floats have also been taken off the agenda. Pub agents say the lockout laws in Sydney have taken a toll on trading as patrons head to the suburbs.
Food and beverage group Keystone has been placed into receivership, with the Cargo Bar at Kings Street Wharf included in the sale.
Receiver Morgan Kelly said the venues will continue to trade on a business-as-usual basis while the Receivers assess each venue in preparation for a sales campaign.
"Given the current buoyant hospitality market, we anticipate a lot of interest in the sale of the venues," Mr Kelly said.
He said employees will continue to be employed on the same terms and conditions as before the appointment of the receivers. "For employees, venue operations and customers, it is business as usual as we undertake the sale process."