A final effort by bankrupt dealmaker Jon Adgemis to regain control of part of his fallen pub empire has collapsed after he failed to meet a key payment deadline of $6.7 million.

The businessman had been negotiating to buy back five Sydney hotels. Oxford House, The Exchange in Darlinghurst, The Norfolk, The Strand Hotel and Camelia Grove Hotel were placed under receivership in September.

The venues were seized by New York lender Muzinich & Co, which appointed FTI Consulting as receivers, while BDO was named administrator of Public Lifestyle Management, the company operating the assets, AFR reported.

https://www.afr.com/property/commercial/bankrupt-adgemis-deal-to-rescue-a-slice-of-his-pub-empire-collapses-20251015-p5n2q8

Under the initial arrangement between Adgemis and BDO, the entrepreneur had made two earlier cash payments totalling around $1 million, with the remaining $6.7 million structured as convertible notes through Archibald Capital. These funds were intended to cover employee entitlements, including unpaid superannuation, estimated at $4.5 million according to BDO’s December report.

In June, BDO began verifying outstanding superannuation liabilities with the Australian Taxation Office (ATO) using funds already received from Adgemis.

However, the final payment, due on September 30, never materialised. Complicating matters, the convertible notes were secured against the five pubs, and on the same day, major lender Deutsche Bank appointed McGrathNicol as receivers to one of the assets. Meanwhile, KordaMentha was brought in as administrator of the development group managing Adgemis’ broader portfolio.

With the deal conditions unmet and the funds unpaid, BDO confirmed the agreement was automatically terminated. In a letter to creditors, BDO’s Duncan Clubb, now appointed liquidator, said he is reviewing the implications of the failed deal but confirmed liquidation proceedings would continue.

“In the interim, we will be proceeding with the liquidation,” Clubb wrote to creditors on Tuesday.

Adgemis launched his Public Hospitality Group in 2021, amassing a portfolio of 22 venues before the business collapsed under $1.8 billion in debt, largely stemming from personal guarantees on loans. Earlier this month, he was declared bankrupt marking the largest personal bankruptcy in Australian history, rivaling the scale of Alan Bond’s 1992 collapse in nominal terms.