The former KPMG dealmaker burst onto the hospitality sector after buying up a string of venues. Huge debts and angry lenders are threatening to push it over.
“Let me guess, you’re calling about our friend Jon,” one of his exasperated associates sighs. By now, everyone who works in pubs and hotels knows about the plight of Jon Adgemis. So too, probably, does everyone who works in finance, a sector the businessman once ruled as KPMG’s best dealmaker.
And while negotiations between PHG and its lenders continue, the strain is beginning to show. Employees claim their superannuation is not being paid, some suppliers are demanding cash on delivery – one venue, which appears unable to get a gas connection, has taken to using industrial LPG canisters. That big thing was Public Hospitality Group, which would buy off-Broadway, unloved pubs, spruce them up, add a fancy restaurant and hotel rooms upstairs, and quickly turn a profit. Perhaps one of the earliest signs that something was not going quite right was an early dispute between Adgemis and Gordon when, in 2021, the billionaire took legal action to recover $6.4 million from a business known as Eastern Property Alliance. The two men eventually reached an out-of-court settlement.
The settlement date was November 2022, which means it could have been in default and subject to the more than 20 per cent interest rate for 10 months, all while Noah’s has sat closed. Insiders describe a chaotic process in which Adgemis initially wanted to turn the property into a hotel within two months, with staff even going as far as ordering the slippers for guests, only to be told abruptly the focus had turned to a different venue.
Gemi’s Fleming, for one, is bullish. “We’re very positive we’ll sort things out in the next few weeks, we’re supporting Jon,” he says. The company has denied that it isn’t paying superannuation. It says it has an arrangement with tax authorities and is in regular contact with the ATO “to ensure staff can be paid their full superannuation entitlements as soon as possible”.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jon Adgemis’ Public Hospitality Group puts first pub on the marketThe proposed sale of the Empire Hotel in Sydney’s inner western suburb of Annandale comes after the collapse of a refinancing deal with Bain Capital this month.
Read more »
Jon Adgemis races for rescue deal in talks with Deutsche Bank over Public Hospitality GroupBain Capital formally walked away from a $500 million plus refinancing of his empire last weekend.
Read more »
Investors Tip Jon Adgemis' Luxury Yacht into ReceivershipInvestors owed money by Jon Adgemis' hospitality empire have put a company that owns his luxury yacht into receivership, highlighting the challenges of negotiations to keep the struggling Public Hospitality Group afloat.
Read more »
Jon Adgemis’ pubs empire on brink as rescue deal collapsesThe former KPMG dealmaker had struck an agreement with Bain Capital to refinance a vast portfolio of venues. However, sources said this had now been terminated.
Read more »
Debt-laden Adgemis mortgages mum’s and grandmother’s homesJon Adgemis mortgages his mother’s and grandmother’s home to borrow cash
Read more »
Spotlight on Adgemis as Bain Capital negotiations dragSources told Street Talk the deal is drawn out, but not dead, with the pubs baron dragging his feet on Bain’s requests.
Read more »