Jon Adgemis nabs George Calombaris after restaurant rescue

The celebrity chef will take on a senior role at Jon Adgemis’s carved up Public Hospitality Group, with other changes coming to the troubled empire after a $400m debt rescue deal.

Sydney pub baron Jon Adgemis has poached hospitality icon George Calombaris to head up the food arm of pub and hotel operation Public Hospitality Group.

In a video posted to Instagram on Tuesday Mr Calombaris revealed he had taken a position of “culinary director at a major hospitality group in Sydney”.

The Australian has confirmed the Greek-Australian businessman and several staff working with Mr Calombaris at Hotel Sorrento in Victoria will join Public in September.

Mr Calombaris previously advised Public on its restaurant Alpha, at the site of Sydney’s Hellenic club, joining the business in March.

The move by Mr Calombaris to join Public comes as the group is preparing to announce a new leadership team.

As part of the deal Public will be split and Mr Adgemis will take on a new role within the group.

He is currently executive chairman of JAGA, the owner of Public.

The group is also likely to change its name.

This comes as Mr Adgemis sealed a $400m debt refinancing deal for the hospitality business after months of uncertainty around the financing of the network of 22 pubs and hotels across Sydney and Melbourne.

The refinancing, arranged by Sydney private lenders Archibald Capital, GEMI Investments, and Deutsche Bank, came after months of negotiations and stabilises the debt costs of the group.

Prior to the deal Public was buckling under 12 per cent interest, with mezzanine loans squeezing the hospitality group and some loans as expensive as 18 per cent.

New York financiers Muzinich & Co have also picked up a significant proportion of Deutsche Bank’s share of Public’s debt stack, increasing their stake from six existing loans within the group.

Mr Adgemis will focus on managing the refurbishment and renovation of several properties in the group’s portfolio, including its flagship site in Bondi at the former Noah’s Backpackers site.

Noah’s was snapped up in a $68m deal in 2022, with plans to reopen in time for summer.

In addition, Mr Adgemis will complete its rebuild of the Kurrajong Hotel in Erskineville, the Vine Hotel in Collingwood and the Town Hall in Balmain.

Mr Adgemis said he was “thrilled to have successfully secured this major refinancing”.

“The strengthened financial foundation will allow us to accelerate our strategic initiatives, enhance our properties, and further elevate our exceptional property portfolio,” he said.

“I’d like to thank all our financial partners for their work and patience under challenging conditions.”

“In particular, I want to thank our people and suppliers who have not only demonstrated incredible loyalty and resilience but are the best in the business.”

Ex-banker Jon Adgemis (L) with former business partner Peter Crinis. Picture: David Swift

Public will also divest several assets, with some pubs within the group set to be placed into an equity fund controlled by Archibald Capital.

Several venues, including St George in St Kilda and Kew’s Puttanesca Osteria, are expected to be sold or spun out.

However, further action from the Australian Taxation Office and Mr Adgemis’ former business partner Peter Crinis remains hanging over the group.

The ATO intervened in May, seeking documents from Mr Adgemis after lodging tax default notices against one of his companies, which was subsequently withdrawn.

Public is facing tax debts of more than $10m.

Mr Crinis is also seeking almost $800,000 from Mr Adgemis, with his case set to appear in the NSW Supreme Court on Monday.

Suppliers and staff at companies controlled by Mr Adgemis are also seeking funds, amid allegations of unpaid wages and invoices

Originally published as Jon Adgemis nabs George Calombaris after restaurant rescue