UPDATE 29/06/16: The Keystone Group has confirmed that lockout laws are partly to blame for the company’s receivership and the forthcoming sale of 17 venues.
Original Story: A string of music and hospitality venues across the country are to be sold off, with The Keystone Group — the company behind Sydney haunts like Bungalow 8, Cargo Bar and The Rook — going into receivership.
A statement released by insolvency management group Ferrier Hodgson says a total of 17 venues are to be sold, including Sydney’s nightlife spot Cargo Bar and King Cross’ Sugarmill Hotel, which is known for its ‘tranny bingo’ and ‘Sugar Jam’ open mic night.
Here’s the full list of affected venues:
Morgan Kelly from Ferrier Hodgson says the affected venues will keep trading on a “business as usual basis” while receivers “assess each venue” in the lead up to a sales campaign.
“Given the current buoyant hospitality market we anticipate a lot of interest in the sale of the venues,” Mr Kelly says.
“The venues in the Keystone Group comprise some of the most iconic and well-known brands in their respective markets.
“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 shortly.”
The Keystone Group was placed into receivership by some of its lenders, “Due to an inability to reach agreement with the Board on key aspects of the Keystone Group’s financial structure.”
The group’s receivership comes after a slew of venues in Sydney announced their closure over the last few months, including Bar Century, Jimmy Liks and Barrio Chino, with some closures being partly blamed on the city’s controversial lockout laws.