The full extent of the perilous financial state of the company behind the Rockpool Bar and Grill restaurant chain has been laid bare through accounts lodged at the weekend with the Australian Securities and Investments Commission.
According to accounts lodged with ASIC on December 13, Pacific Hunter Group, which owns Rockpool Bar and Grill, Sake Restaurant and Bar, The Cut Bar and Grill and Bar Patron, along with Fratelli Fresh Restaurants, reported a $288m loss for the year to June 2023.
That compares to a $75.8m loss the year before, as the company was battling restaurant closures amid the global Covid-19 pandemic.
In 2023, however, Pacific Hunter Group, which was in turn owned by Quadrant Private Equity, increased its revenue to $298m from $209m.
The accounts have been released following a deal with one of the group’s main lenders, Metrics Credit, to take control of the business, and Sydney-based Metrics is investing in its premium restaurants with refurbishments and moving to more swiftly shut unprofitable venues.
One of them which has shut after hurting the bottom line is The Argyle Hotel in Sydney.
The hotel has underperformed as more venues open in the Western Suburbs, deterring The Argyle’s patrons from coming into the city, and spending per customer was at a lower level than other more premium venues.
Also earmarked for closure are Bavarian Beer Café restaurants within the portfolio, which Quadrant had been moving on before it handed over the keys.
Metrics Credit sources say restaurant sales for its premium restaurants like Rockpool are up from last year, in a sign of resilience at the top end of the market, despite economic weakness.
The larger loss came with a $180.9m impairment charge and a modified interest charge of $48.5m.
In August of that year, bank loans were extended to 14 February, 2026 from the due date of 24 February, 2024
Since June 2023, the group has closed 16 venues out of a stable of about 50 restaurants.
Its borrowings were $234.2m.
Metrics bought out other lenders over six months ago, including those from South Korea, and has hired new management to run the business and pursue a new strategy, which may involve further investment.
Quadrant first purchased the restaurant group of celebrity chef Neil Perry in 2016, which included Spice Temple and Rockpool through its Urban Purveyor Group, in a deal worth close to $100m, and while initially involved with the private equity firm, he no longer has an interest in the business.
Quadrant purchased Urban Purveyor Group, the largest restaurant group in Australia, the year before for about $200m before going on to buy Fratelli Fresh.
Brands like Fratelli Fresh have been running at a loss.
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