GG Espresso collapse: George and Erica Gregan’s coffee shop, bar and restaurant business for sale

Former Wallaby captain’s coffee shop, bar and restaurant group is on the market after collapsing with $1 million in debt.

Former Wallabies captain George Gregan and former wife Erica at the opening of The George Bar in Brisbane.

GG Espresso, the food and beverage group launched by George Gregan and his former wife Erica in the late 1990s, has been offered for sale as a going concern after being placed in voluntary administration last week.

Administrator Ian Purchas of SV Partners is advertising the business and seeking expressions of interest for the “iconic Australian business’’, which has coffee shops and restaurants in Sydney and Brisbane.

Mr Purchas said he had been approached by parties about potentially buying the business after it was placed in administration with debts of about $1 million, and he has therefore offered it for sale in order to ensure creditors get the best outcome.

There is also still the possibility that the group will continue to trade under the management of sole director Erica Gregan, who will propose a deed of company arrangement to creditors, Mr Purchas said.

“Our obligation is to get the best outcome for creditors that we can,’’ Mr Purchas said.

Mr Purchas said it was rare that a business would be sold out of administration, but considering there had already been interest he was testing the market.

“With the current times with Covid and the trading difficulties for CBD-based hospitality businesses and particularly now that we’ve seen Brisbane locked down, you can see how hard it is for these businesses to trade.

“But I did receive a couple of calls from interested parties.’’

While it had once operated as many as 30 or more outlets, the Gregan Group’s operating venues now number just five, with two more the subject of negotiations with landlords.

The operating sites are at the Sydney Opera House, which is expected to soon to be taken over by another operator, and sites at the Qantas headquarters, Gore Hill, 111 Eagle St in Brisbane and 56 Pitt St, Sydney.

The other two stores where conversations with landlords are ongoing are at Macquarie Park in Sydney and Eagle Lane in Brisbane.

Gregan, pictured here at the 2003 World Cup, had a celebrated rugby career.

An advertisement for the business says it “has a number of bars, restaurants and cafes in prime locations in Sydney and Brisbane’’.

Expressions of interest “with a refundable 10 per cent deposit” are required by 3.30pm on April 8.

“An information package will be provided to parties who execute a confidentiality deed and pay a refundable bond of $5000,’’ the advertisement says.

George Gregan at one of his chain of coffee shops in North Sydney.

About 10 of the 65 staff were laid off when the business was placed in administration, and Mr Purchas at that time closed two stores permanently.

The company’s main creditors include landlords, the Australian Taxation Office, related parties and trade creditors, Mr Purchas said.

Gregan, who is Australia’s most internationally-capped player and captained the Wallabies from 2001-2007, set up the business with Erica in 1998.

Mr Purchas said last week the end of JobKeeper and leasing protections for the business, plus the overall impact of the pandemic, were the main reasons for it running into trouble.

Originally published as GG Espresso collapse: George and Erica Gregan’s coffee shop, bar and restaurant business for sale