Not closing yet: Rockpool owner under immense post COVID financial pressure
The operator behind the Rockpool Bar & Grill, Spice Temple and Sake is questioning its ability to operate in a post pandemic world, saying COVID-19 has created “material uncertainty”.
Pacific Hunter Group, previously known as Rockpool Dining Group, could seek financial support including “deferral of interest payments on existing bank loans, depending on the pace of sales recovery and extent of waivers and deferrals provided by various creditors (including landlords).”
The Quadrant Private Equity backed hospitality group lost $84.5 million in the last financial year according to documents lodged with the corporate regulator.
The loss is more than the $79.9 million lost in 2020.
While Pacific did receive a $20 million cash injection from shareholders and $10 million in JobKeeper payments, it has not been enough to turn a profit.
Pacific’s assets also include the Fratelli Fresh chain, Rosetta, The Argyle and Bar Patron.
“Since the end of June, the group has agreed to surrender four leases as part of ongoing review of existing estate and negotiations with landlords to rationalise the groups portfolio to focus on its most profitable locations,” stated documents lodged with the Australian Securities and Investments Commission (ASIC) in late November.
The Group suffered a sales downturn of 23% on the previous year to $203.3 million — from $262.8 million in FY2020.
Independent auditor, KPMG’s John Wigglesworth has also questioned Pacific’s ability to perform.
“The conditions disclosed … Indicate that a material uncertainty exists that may cast 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,” he wrote.
The Rockpool Group, which was previously owned by Neil Perry who remains a shareholder, has 81 restaurants in Australia and New Zealand.
So far there is no suggestion of pulling the plug on Rockpool Group, however solvency discussions are likely being held.
According to the company directors’ report to ASIC: “The group has continued to benefit from relief measures from its lenders, creditors, and federal and state government bodies – including additional reductions and/or deferrals of payroll tax and other taxes, together with grant funding from state run programs, notably the Job Saver program in New South Wales and the Licensed Hospitality Venue Fund in Victoria.”
“During the year, the group opened three new venues, permanently closed five and converted three, taking its total number of venues to 81,” the report reads.
However, to reduce its burden Pacific has lessened its total liabilities by more than 11% in the year.
Pacific is “in discussions with its lenders regarding their ongoing support.”
Irit Jackson, 2nd December 2021
