A little over a month ago, Anthony Prior, Director of Hotels and Bars for hospitality giant The Keystone Group, participated in an intimate panel on Sydney’s controversial lockout laws and offered insight from a hospitality industry perspective. The panel, which was organised by Diageo, also included industry players Martin O’Sullivan (President of the Small Bars Association), Pasan Wijesena (Earl’s Juke Joint), and Mikey Enright (The Barber Shop). While much was discussed, the conclusion that the lockout laws were doing irreparable harm to Sydney’s hospitality scene was unequivocal. Now, The Keystone Group have announced that the draconian measures that have effectively turned Sydney into a nanny state may be partly to blame for the otherwise successful company going bust.
Earlier this week, headlines began popping up surrounding the shock announcement, reporting that The Keystone Group have gone into receivership, which means that their assets – 17 of Australia’s most popular venues including restaurants Jamie’s Italian and Kingsleys, and Sydney hotspots Cargo Bar and Bungalow 8 – will be sold as part of a campaign in the near future.
While debt has also been cited as a major reason for the stalwart company’s predicament, the hospitality group has made an official statement referencing the lockout laws as playing a part. In a statement posted on The Shout, Richards Facioni, Executive Director of the Keystone Group, and John Duncan, Managing Director, state: “the debt raised to undertake its expansion, combined with changes to the local market, including lock out laws, have placed significant financial strain on the business.”
Insolvency Group Ferrier Hodgson have reported that the venues may be sold off collectively or broken up, but will continue to operate as usual while they are being assessed. Receiver Morgan Kelly seems confident that the sales will be well received, stating that “given the current buoyant hospitality market we anticipate a lot of interest in the sale of the venues. The sale of the group represents a unique opportunity for the right operator and is particularly suited to hospitality specialists interested in expansion.”
The sale process is expected to commence in the near future and will include the following Keystone venues:
Sydney
Bungalow 8
Cargo Bar
Manly Wine
Sugarmill Hotel
The Rook
The Winery
Gazebo Wine Bar
Chophouse
Jamie’s Italian
Jamie’s Italian Trattoria
Kingsleys
Perth
Chophouse
Jamie’s Italian
Canberra
Jamie’s Italian
Brisbane
Jamie’s Italian
Kingsleys
Adelaide
Jamie’s Italian
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