Warning over Brisbane hospitality empire’s financial situation
Doubts have been raised about the financial viability of pub baron Godfrey Mantle’s portfolio of venues.
Mantle recently won a 20-year council lease over a Mt Coot-tha restaurant. But a report by The Courier-Mail has questioned whether Mantle Group Hospitality can stay afloat after a warning by auditor PricewaterhouseCoopers.
The group’s venues include a number of Pig ‘N’ Whistle pubs, Jimmy’s on the Mall, Italian restaurant Milano, The Charming Squire pub in Brisbane and Sydney’s The Squire’s Landing.
The accountancy firm has warned that a “material uncertainty exists that may cast significant doubt” on the group’s ability to continue operating. The group breached loan agreements in 2018-19 and has been forced to seek refinancing, after profits fell from $2.9 million to a $563,000 net loss in 2017-18.
“As a result of the expiry of the finance facilities and status of the refinancing, there is material uncertainty that casts doubt on the company’s ability to continue as a going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business as to the going concern status of the company,” PwC said in its annual report.
Speaking to The Courier Mail, a Mantle Group spokeswoman said the company “continues to operate business as usual for all its venues and staff continue to be paid correctly and in accordance with the existing certified agreement”.
Sheridan Randall, 15th January 2020
