London-based lender Cheyne Capital has formally taken control of Press Up Hospitality Group and plans to invest fresh capital into a business founded more than a decade ago by Paddy McKillen jnr and Matt Ryan.
As part of a debt-for-equity swap, Cheyne has taken a majority equity stake and will invest capital into the chain to put it on a sustainable financial footing and to provide a platform for growth.
The size of Cheyne’s investment has not been disclosed but it is believed to be about €20 million. The Currency business website last week reported that Cheyne was owed €45 million by Press Up.
The group’s 935 staff have been informed that all of the venues will remain open with the exception of Wowburger on Parnell Street in Dublin, which is to close. Staff at Wowburger will be offered roles at other venues in the group.
Separately, Shane McCarthy and Cormac O’Connor from KPMG have been appointed as receivers by Cheyne to four entities that comprise 12 venues under the Elephant & Castle, Wagamama and Wowburger restaurant brands.
The businesses that have been put into receivership are Elephant & Castle Ltd (with venues in Temple Bar, Rathmines in Dublin and Bray in Co Wicklow), Svetac Ltd (operates Wowburger restaurants on Wexford Street, Ranelagh, and Parnell Street in Dublin, and in Bray), Portalon Ltd (operator of Wagamama on South King Street, Dundrum and Blanchardstown in Dublin), and Silots Ltd (which runs Elephant & Castle in Churchtown and Beacon in Dublin).
Press Up plans to engage with all its landlords and suppliers on the terms of their deals.
Another 18 venues will operate outside the receivership process. These brands include Angelina’s, Captain Americas, Doolally, Isabelle’s, MacKenzie’s, The Grayson and Mama Yo restaurants, the Stella Cinema in Rathmines, and seven bars, including the Workman’s Club on Wellington Quay, the Vintage Cocktail Club in Temple Bar and the Foxhunter in Lucan.
[ Where did it all go wrong for Press Up?Opens in new window ]
Both Mr McKillen jnr and Mr Ryan have stepped down from the management of the business. Mr McKillen jnr will remain as a minority shareholder with the chain while Mr Ryan will have no stake in the business. It is understood that Mr McKillen jnr’s holding will be below 10 per cent.
A three-person board will be established to oversee what is Ireland’s largest chain of restaurants, bars and clubs. This will include two representatives for Cheyne and one for Mr McKillen jnr.
Patrick Sheehan is leading the restructuring process for Cheyne, with Ronan Lynch as interim chief financial officer; Ben Barclay remains as CEO of Press Up.
Commenting on the change in control, Mr Sheehan said: “Press Up is delighted to have the support of long-standing partners who know the business well and who are excited about the opportunities in the Irish market. This partnership will enable Press Up to focus on delivering a quality experience to all its loyal customers as a leading hospitality group in Ireland.”
According to its website, Press Up was cofounded by Mr McKillen jnr and Mr Ryan and began with the Captain America’s restaurant on Grafton Street in 2007, later adding Wagamama and the Workman’s Club. It grew to more than 50 venues and about 2,000 employees, including a chain of hotels that were sold last year.
Commenting on the restructuring, Mr McKillen jnr said: “It’s a source of pride how Press Up has grown since its inception, introducing authentic concepts to the Dublin cityscape, such as the Stella Cinema and The Workman’s Club. In a challenging period for the sector, this transaction is really positive and allows Press Up to begin the next chapter in its story.
“Cheyne have been a very supportive partner for a number of years and when we first began discussing with them about taking an equity position in the business towards the end of last year, it became clear straight away that this was the best path forward. We’re excited for the future and for the business to be able to focus on providing outstanding hospitality experiences for our customers and are also delighted to be staying involved, retaining a shareholding as well as board representation.”
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