Overview
Huge news for Australia's bar and restaurant scene, Keystone Hospitality Group has been place in receivership. The sprawling empire behind Australia's Jamie's Italian restaurants, Sydney's The Winery, Gazebo, Manly Wine, Cargo Bar, Bungalow 8, alongside multi-city venues Kingsley's and Chophouse, will sell their collection of venues after being unable to settle on their financial structure with lenders, according to The Sydney Morning Herald.
Keystone's venues, including 17 bars, pubs and restaurants across the country and six Jamie's Italian joints, could be sold as a whole package or individually. Cargo Bar, Keystone's very first venue opened in 2000, has been up for sale since March, but now the likes of Kingsley's, Manly Wine, Sugarmill Hotel and Sweethearts Rooftop and The Rook and the rest of the portfolio will go on the market — and SMH puts the value at more than $100 million. Keystone also has over 1000 employees nationally, according to news.com.au, who'll be sitting tight until more details come through.
So, what about that elephant in the room? Lockouts. Have NSW's controversial lockout laws had anything to do with this? We don't have solid data on Keystone's venues and their takings pre- and post-lockouts, but many of their venues like Cargo Bar, The Winery, The Sugarmill, Sweethearts Rooftop, Gazebo and Bungalow 8 all sit within the lockout zone in Sydney. And in a statement published on news.com.au, Keystone executive Richard Facioni and managing director John Duncan included the lockout laws in a host of pressures on their businesses.
"Two years ago the Keystone Hospitality Group undertook a major expansion program, including acquisitions, to become a significantly larger, national group," they said. "However, the debt raised to undertake its expansion, combined with changes to the local market, including lockout laws, have placed significant financial strain on the business."
It'll be business as usual for the Keystone venues until the receivers assess each business's assets, takings and brand for the sale. Receiver Morgan Kelly told SMH they expected selling the portfolio to be easy peasy. "Given the current buoyant hospitality market, we anticipate a lot of interest in the sale of the venues," he said.
Via SMH and news.com.au. Image: Cargo Bar/Keystone.