Australia Day-banning pub group Australian Venue Co owned by Hong Kong private equity firm PAG
The pubs giant that sparked outrage after banning Australia Day at more than 200 venues was bought by a Hong Kong-based firm last year.
The hospitality giant that sparked outrage after banning Australia Day festivities at more than 200 venues around the country was bought by a Hong Kong-based private equity giant last year.
Australian Venue Co (AVC), which owns some of the country’s most iconic pubs, bars and restaurants including Sydney’s Cargo Bar and Melbourne’s Esplanade Hotel, was sold by New York-based owners KKR to PAG Private Equity in August 2023.
KKR sold its 80 per cent stake in the country’s second-largest pubs group for a reported $1.4 billion. At the time, AVC chief executive Paul Waterson said the agreement marked an exciting time for the company and its 8500 employees.
“We look forward to working with our new partners in PAG,” he said in a statement. “Their investment affirms the strength of the platform and our future growth potential in Australia and New Zealand.”
Lincoln Pan, co-head of private equity at PAG, said Australian Venue Co was “a proven market leader with an exceptional management team and great potential”.
“Our goal is to work with strong businesses and help them become even stronger in Australia,” he said. “AVC has created some of the most unique and iconic venues across Australia and New Zealand, and we are looking forward to supporting them on their next stage of growth.”
KKR first acquired the hospitality group in 2017 when it had just 50 venues. Under KKR’s ownership Mr Waterson spearheaded nearly 160 purchases, growing AVC’s portfolio to 212 locations.
The company was met with widespread backlash over the weekend after directing managers not to allow flagwavers to celebrate in its establishments on January 26.
“Australia Day is a day that causes sadness for some members of our community, so we have decided not to specifically celebrate a day that causes hurt for some of our patrons and our team,” an AVC spokeswoman told the Herald Sun.
Facing growing threats to boycott, the company released another statement on Monday admitting the directive had caused “concern and confusion”.
“We sincerely regret that — our purpose is to reinforce community in our venues, not divide it,” a spokesman said. “It is not for us to tell anyone whether or how to celebrate Australia Day. Whether you choose to celebrate Australia Day or not, everyone is welcome in our pubs, always. We have been, and are always, open over Australia Day and we continue to book events for patrons.”
But many online vowed to continue to boycott AVC venues.
“Not good enough,” one wrote. “All those listed are on my blacklist to never enter again.”
The Project co-host Steve Price also slammed AVC on Monday night’s show, saying “apology not accepted”. “When are these finger-waving woke corporations going to wake up to the fact we don’t want them to tell us what to do on Australia Day?” he said.
“Last year it was Woolworths … the CEO, Brad Banducci, ended up losing his job. Just shut up and let people throw a lamb chop on the barbecue, have a beer and get on with it.”
Outspoken commentator Prue MacSween slammed the AVC bosses for playing politics.
“It’s just a money-making exercise for these people, they want to exploit Australians, and maybe they should stick to that and not try to impose their values on us,” she told The Daily Mail.
“Because it’s not welcome, they’re parasites on our country.”
MacSween said it was “appalling and insulting” that a foreign-owned firm tried to cancel the national day. “The nationalist pride of Australia is an overriding thing and they’ve underestimated how sacred this is,” said.
“Middle Australia is sick of it, fed up with it, and we’re not going to take it anymore.”
News of the Australia Day ban first came as The Australian reported PAG was already considering an exit of AVC by floating the hospitality group on the ASX next year.
PAG is weighing an initial public offering for the company in order to limit its exposure to investments with gambling revenue, according to the newspaper.
The original decision was also met with fury from Coalition MPs.
Queensland Senator Matt Canavan said the private company was acting as “moral guardians”.
Appearing on the Today show, Mr Canavan acknowledged there were differing views on January 26. “Get off their moral high horse,” he said. “They’re a pub, for God’s sake They deal in alcohol … I mean, let people have a good time at a pub.”
More than 80 councils around the country no longer hold citizenship ceremonies on January 26.
Many regions across Australia, particularly areas with high Indigenous populations, hold community events on January 26, to show solemn support for Aboriginal Australians and the effects of colonisation.
‘Invasion Day’ rallies in the capital cities attract thousands of people.
Australia Day officially became a public holiday on the day of January 26 for all states and territories 30 years ago, in 1994.
The first time January 26 was celebrated as Australia Day was in 1935.
— with NCA NewsWire