Following a long period of uncertainty surrounding the future of Press Up Hospitality, its 935 employees have finally been provided with some details about the strategy for the company’s ongoing operations within the restaurant, bar, and club sector. Press Up’s debt, which amounts to €45 million, was turned into equity in a rescue strategy where control of the business was assumed by London-based financier Cheyne Capital. Co-founder Paddy McKillen Jr is maintaining a fractional stake in the company, below 10 per cent, while Cheyne is infusing around €20 million of fresh investment into the conglomerate.
The company’s strategy will maintain standard operations at 18 of their venues. However, four subsidiaries overseeing another 12 venues have entered receivership, managed by Shane McCarthy and Cormac O’Connor from KPMG, while Parnell Street’s Wowburger has closed down.
Brands that fall under receivership include Elephant & Castle, Wowburger, and Wagamama, all of which are grappling with serious financial challenges. Continuation of trade was deemed unfeasible, prompting the initiation of receivership.
Efforts to restructure the existing debt of these businesses are set to be initiated by receivers, with conversations with suppliers and landlords in the pipeline. Unless a stable financial ground is established, these venues may potentially face closure.
A reduced VAT rate back to 9 per cent for eateries, as offered on Budget day, would undoubtedly contribute positively to Press Up’s financial health. However, Finance Minister Jack Chambers has not yet demonstrated a willingness to favour this approach.
Currently, Cheyne, aided by the receivers, are working to enhance the quality of the business offering and its agility, with an aim to attract external investment or prepare it for sale. What is evident, though, is that Cheyne Capital has no intention to remain the permanent proprietor of Press Up.