George and Erica Gregan’s coffee and restaurant group has been placed in administration

George Gregan’s coffee and restaurant chain has been placed in administration with more than $1 million in debt.

Former Australian Rugby Union captain George Gregan with former wife Erica at 'The George Bar.' in Brisbane.

The hospitality group established by former Wallaby great George Gregan and former wife Erica in the late 1990s has been placed in administration with more than $1 million in debt, however the aim is to find a way to trade through.

GG Leasing, which trades as GG Espresso, Eagle Lane Bistro, The George Bar and Bistro and Sydney Opera House Green Room, was this week placed in administration, with SV Partners appointed.

SV Partners director Ian Purchas said the company’s sole director Erica Gregan, was looking to propose a deed of company arrangement (DOCA) which would allow the business to trade through and recover.

Since being appointed after-hours on Friday last week, Mr Purchas has closed two of the nine venues which were trading across Sydney and Brisbane.

About 10 of the 65 staff were laid off at that time.

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

George Gregan during an Australian team training session during the 2007 World Cup in France.

It expanded over the years to operate coffee shops and restaurants across Sydney and Brisbane.

“This was quite a large business. At one stage at its height it probably had in the vicinity of 30 bars, restaurants and cafes going at once,’’ Mr Purchas said.

“Over recent years and I think during COVID-19 it’s worked its way down to the nine stores that were operating when I was appointed on Friday.

“Since Friday I have closed two stores. I’m trying to come to some accommodating arrangement with the landlords of four other stores, and one of the stores comes off lease at the end of this month so it’s not being renewed.

“Out of the nine the company will definitely go forward with two of them and hopefully another four.’’

Mr Purchas said the end of JobKeeper and leasing protections for the business, with both of these to hit at the end of this month, plus the overall impact of the pandemic, were the main reasons for the business running into trouble.

A breakdown of the amounts owed to each class of creditor is not yet available.