Quadrant’s Restaurant Chains Face Closure

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Rumours are spreading that some of Australia’s famous and loved restaurants may close down. These rumours come after the projected portfolio review of Quadrant Private Equity’s hospitality arm.

Pacific Hunter Group is Quadrant’s hospitality arm. And within this group is Pacific Concepts, which will be the main focus of the firm’s portfolio review. 

Writer Sarah Thompson noted, “This is part of the business that owns casual dining venues such as Fratelli Fresh, El Camino Cantina, The Bavarian, Munich Brahaus, Bar Patron and The Argyle. The related Hunter Street Hospitality is the operator of Rockpool Bar & Grill, Spice Temple, Rosetta Ristorante, Sake Restaurant & Bar and Alice.”

And other sources noted that it is still unclear which restaurants, and how many, will be affected by this review, but what is definite is that the company will close down some restaurants due to a year-on-year loss due to the pandemic. 

A writer noted that the Pacific Hunter Group recorded post-pandemic losses of $75.72 million, $87.48 million, and $80 million despite improving sales late last year.

Pacific Concepts’ review focuses on its casual dining ventures as they believe these restaurants have been severely affected and are also the same venues that are bleeding money. Many Australians are more cautious with their spending, and many are getting into so much debt to pay for essentials, which typically results in saving up on dining out.

The company’s official statement mentioned that the review was also driven by the worldwide cost of living increase due to inflation, effectively decreasing the purchasing power of the AUD. For restaurants, this means jacking up the prices of products and essential ingredients for the restaurant.

KPMG, the company’s auditing firm, noted that the financial reports filed with the Australian Securities and Investment Commission in December show an “a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern, and therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report”.

Quadrant is still finalising which stores will close and is expected to announce its decisions in the following weeks.

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