Press Up Hospitality is holding one-to-one discussions with the 106 employees who worked at the three Wagamama outlets it closed this week, with a view to retaining a majority of them on its payroll.
On Wednesday it emerged that Press Up had closed its Wagamama restaurants in Dundrum, South King Street and Blanchardstown in Dublin after receivers appointed last week failed to reach agreement with the UK-based chain on a restructuring of their franchise arrangement. The venues closed with immediate effect and staff were put on temporary lay-off, entering a 30-day consultation process with the receivers.
They will continue to be employees of Portalon Ltd, the entity that held the Wagamama franchise, during this period.
In a statement released to The Irish Times, Press Up said it was “engaging with employees to see if they can be redeployed across the wider group”.
“Any employees redeployed across the group will be paid by Portalon Limited in this period.”
Press Up has reached agreement with the respective landlords of the South King Street and Blanchardstown sites and plans to open new concepts at the venues in time for Christmas trading. In that context, it is keen to retain staff to operate those outlets in a scenario where chefs and other key staff are in demand in the hospitality sector. A number of staff would also be required to plan the opening of the new concepts.
No deal was reached on the Dundrum lease. The Wagamama restaurant there employed about 30 staff.
Podcast - Press Up: Where did it all go wrong?
Irish Times business editor Ciarán Hancock explains. Presented by Bernice Harrison.
Last week, London-based lender Cheyne Capital effectively took control of Press Up Hospitality Group with a plan 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 is taking a majority equity stake in the business.
Cheyne appointed Shane McCarthy and Cormac O’Connor from KPMG as receivers to four entities that comprise 12 venues under the Elephant & Castle, Wagamama and Wowburger restaurant brands. This included Portalon Ltd, the operator of the Wagamama venues.
Portalon was effectively insolvent and the receivers from KPMG – Shane McCarthy and Cormac O’Connor – had no choice but to cease trading when a deal with Wagamama could not be reached. It is understood that the other entities in receivership – 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), and Silots Ltd (which runs Elephant & Castle in Churchtown and Beacon in Dublin) – are not under threat of closure.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
