Press Up Hospitality has closed its Wagamama restaurants in Dundrum, South King Street and Blanchardstown in Dublin after receivers appointed last week failed to reach agreement with the UK-based chain on a restructuring of their franchise arrangement.
Some 106 employees are impacted by the move and have been informed of the decision to cease trading with immediate effect. The receivers have said they will liaise with the employees to detail the implications for their continued employment with Press Up, with redeployment opportunities a possibility.
Press Up has reached agreement with the respective landlords of the South King Street and Blanchardstown sites for them to remain as operating venues within the group, and “hopes” to have new offerings ready in the next four to eight weeks. No deal was reached on the Dundrum lease.
Last week, London-based lender Cheyne Capital formally took control of Press Up Hospitality Group with a plan to invest fresh capital into a business founded more than a decade ago by Paddy McKillen jnr and Matt Ryan. As part of a debt-for-equity swap, Cheyne took a majority equity stake in the business.
[ Where did it all go wrong for Press Up?Opens in new window ]
Cheyne appointed Shane McCarthy and Cormac O’Connor from KPMG as receivers to four entities that comprise 12 venues under the Elephant & Castle, Wagamama and Wowburger restaurant brands. This included Portalon Ltd, the operator of Wagamama on South King Street, Dundrum and Blanchardstown in Dublin.
Latest accounts filed for Portalon show that it had accumulated losses of €250,443 at the end of May 2021.
[ New Press Up owner Cheyne Capital plans to invest fresh funding in businessOpens in new window ]
The other businesses put into receivership were Elephant & Castle Ltd (with venues in Temple Bar, Rathmines in Dublin and Bray in Co Wicklow), Svetac Ltd (operates Wowburger restaurants on Wexford Street, Ranelagh, and Parnell Street in Dublin, and in Bray), and Silots Ltd (which runs Elephant & Castle in Churchtown and Beacon in Dublin).
Another 18 Press Up venues are operating outside the receivership process.
Wagamama was contacted for comment.
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