Paint and plonk business Pinot & Picasso falls into administration

The idea of painting while plastered spawned a legion of ‘paint and sip’ venues after Covid-19, but one of the original companies in the field has run aground.

Pinot & Picasso, one of the original businesses which spawned the ‘paint and sip’ events that proliferated through Australian suburbs after Covid-19, has collapsed into administration.

The administration has led to a number of job losses at the business.

The social event of meeting up for a birthday party, hens night, baby shower or party to create a piece of art while also quaffing wine became a highly popular night out after the end of pandemic lockdowns, with Pinot & Picasso one of the first to exploit the party idea — quickly followed by plenty of similar businesses.

Pinot & Picasso has 42 franchise stores across Australia and New Zealand, and the company owns and operates seven stores in Australia.

It looks to have succumbed to the cost of living crisis which has crunched household budgets to rein in spending on nights out, takeaway meals and restaurants.

Documents lodged with the Australian Securities & Investments Commission shows Sule Arnautovic of Salea Advisory has been appointed as voluntary administrator to Veuve Ventures, the master franchisee of the Pinot & Picasso business.

In a statement Salea Advisory said the Pinot & Picasso directors had advised the reason for the administration was largely attributable to a reduction in discretionary consumer spending, as Australians and other customers look to tighten entertainment budgets.

It is believed the individual businesses which run Pinot & Picasso outlets will continue to operate as normal while the administration is in place.

On appointment of the administrator, the Veuve Ventures business employed around 16 full-time staff and approximately 41 casual staff. The companies have made seven redundancies as part of the administration process.

The administrator is continuing to trade the business in the ordinary course during the administration period with a view to exploring a restructuring or recapitalisation of the companies via a deed of company arrangement and/or implementing a going concern sale of business.

The franchises will continue to trade while the business is in administration.

“The administrator of the companies is undertaking an urgent assessment of the companies’ financial affairs,” a statement said.

“At this stage, it is too early to advise if there will be any dividend or distribution paid to the ordinary unsecured creditors of the companies.”

Pinot & Picasso opened its maiden stores in Byron Bay and Penrith just before the onset of the Covid-19 pandemic in 2020, but had ambitious plans for growth across Australia and New Zealand.

In early advertising for new franchise operators in 2019, Pinot & Picasso spruiked the potential growth of the “paint and sip” craze — which it dubbed as “leisure art business” — growing strongly in the US.

“The low-cost lifestyle business is launching at the right time, as the Paint and Sip model gathers traction in Australia,” Pinot & Picasso said in one franchisee advertisement.

“The leisure art business is currently seeking out interest from prospective partners who are looking to make a valuable investment in first-to-market franchise opportunity.

“Those who join the Pinot & Picasso network will have access to extensive support initiatives and ongoing training to assist them in the launch of their business, all backed by the head office support team.

“Where the model really excels however, is in its flexibility. Classes are run at night or after-hours, with minimum staff required to operate, opening the door for potential franchisees to leverage the business as an additional revenue stream.”