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. It is understood that no final decision on the concepts have been signed off.
No deal was reached on the Dundrum lease.
Last week, London-based lender Cheyne Capital effectively 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.
The size of Cheyne’s investment has not been disclosed but it is believed to be about €20 million.
[ 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 (operating 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).
The receivers have said they are engaging with landlords and creditors in connection with those businesses.
Another 18 Press Up venues are operating outside the receivership process. These brands include Angelina’s, Captain Americas, Doolally, Isabelle’s, MacKenzie’s, The Grayson and Mama Yo restaurants, the Stella Cinema in Rathmines, and seven bars, including the Workman’s Club on Wellington Quay, the Vintage Cocktail Club in Temple Bar and the Foxhunter in Lucan. The Wowburger venue on Parnell Street in Dublin was closed.
Established in London in 1992, Wagamama is part of the Restaurant Group, which in turn is controlled by private equity giant Apollo. Wagamama opened its first venue here in South King Street in 1998.
Wagamama was contacted for comment.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here