Over in Australia, both the hospitality and pub worlds were rocked by the news of a billionaire founder’s bankruptcy.
Jon Adgemis, a former KPMG partner and later founder of Public Hospitality portfolio of various pub venues across the country, declared himself bankrupt after the Australian Taxation Office continued to pursue him over a tax bill of over $162 million Australian dollars.
Adgemis reported total debts of over $1.8 billion AUD, while creditors including Monaco-based private equity manager Richard Gazal have also been independently seeking action for over $150 million AUD owed to him.
“I am deeply disappointed that my broader vision for the group did not come to fruition, and that, despite sustained efforts, I was unable to deliver a better outcome for creditors,” Adgemis said in a statement on his bankruptcy filing.
While Adgemis at one point owned more than 20 pubs across Australia, Public Hospitality’s portfolio was significantly slimmed down when Deutsche Bank was appointed to restructure the company amid mounting business debt in 2024.
Flashy billionaire bankruptcy leads to sale of multiple Australian pubs
With courts now set to make a decision on Adgemis’ personal debts, Adelaide-based restructuring firm McGrathNicol has been appointed as the receiver of the five remaining pubs that the businessman owned, alongside the hotels that housed them.
Two of these — The Empire Hotel in the Annandale suburb of Sydney and The Diplomat Hotel at Potts Point in the inner city — are now up for sale.
Related: Iconic New York castle hotel files for Chapter 11 bankruptcy
Two other properties in Sydney and Melbourne on which Adgemis initiated construction will continue being built for the time being, likely in the hopes that a new investor will take them on during the sell-off process.
McGrathNicol said it will also seek developers to take over ongoing construction at the South Bondi Hotel, on the beach particularly popular with tourists. During the Covid pandemic, Adgemis bought dozens of development projects that ultimately led to his spiraling debts.
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The accounting and restructuring firms assigned to the case will take a month to oversee Adgemis’ portfolio and present a final decision on what to do with any remaining assets.
Meanwhile, the Investor General also overseeing the case has questioned whether Adgemis trying to seek personal insolvency was a way to avoid a full bankruptcy and extensive investigation into his company’s assets.
Image source: Javen/Shutterstock
Inspector General: “These debts can now be properly investigated”
“Bankruptcy provides a longer period in which these debts can now be properly investigated and assets identified, and this will be done by the trustee nominated by the Deputy Commissioner of Taxation,” the Inspector General’s office said in a statement.
Adgemis had become known for his flashy lifestyle; at the start of June, he had to vacate a waterfront mansion dubbed the “Bang & Olufsen house” for which he paid $20,000 a week in rent.
In 2024, he took control of a $2.85 million yacht that was once owned by Hollywood starlet Shirley Temple.
Adgemis’ mounting financial problems and personal bankruptcy mean he is unable to serve as director of Public Hospitality during the ongoing insolvency process.
Related: Popular hotel chain files Chapter 11 bankruptcy, guests stranded
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