Some of Australia’s most iconic restaurants and bars will be sold off after the Keystone Group went into receivership this week.
Keystone is one of the country’s largest hospitality groups with 17 well-known establishments under its umbrella and an estimated wealth of $100 million. Eleven of these establishments are based in Sydney and up for sale, including The Winery, Gazebo, Bungalow 8, Cargo Bar and Jamie’s Italian.
Receiver Morgan Kelly from insolvency group Ferrier Hodgson is confident in finding the right buyer and is expecting strong interest, even though many of Sydney’s restaurants, pubs and bars have recently been closed down.
“Given the current buoyant hospitality market we anticipate a lot of interest in the sale of the venues,” Mr Kelly told The Newsroom.
“The sale of the group represents a unique opportunity for the right operator and is particularly suited to hospitality specialists interested in expansion.”
Mr Kelly said the venues will continue to trade on a business-as-usual basis, while receivers for the sale assess each individual venue.
He said the business could be sold in its entirety or each asset sold individually, depending on the market.
Some venues may be forced to close if the assets are sold on an individual basis.
The Keystone Group employs about 1200 people nationally and Mr Kelly assured them and their customers there would be no immediate change to operations.
“For employees, venue operations and customers, it is business as usual as we undertake the sale process,” said Mr Kelly.
The sales process is expected to commence shortly.
The Keystone Group was put into receivership on Tuesday after its board and lenders could not reach an agreement on key aspects of the company’s financial structure. – Paul Burns
Photo from Nic Taylor’s Flickr account