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Irish Independent
13-05-2025
- Business
- Irish Independent
Investment company seeks €8.7m judgment against Paddy McKillen Jr
Cabriz Finance Ltd, of Riverside Road, Carrickmacross, Co Monaghan claims Mr McKillen Jr, with an address for communication at Ely Place, Dublin, provided various guarantees and indemnities for four loans to four companies. The companies – Welltrack Ltd, Yarnway Ltd, Ahlstom Ltd and Dontigo Ltd – defaulted on the loans, and Mr McKillen Jr failed to pay the money due despite a demand, Cabriz says. The loans and guarantees/indemnities were entered into in December 2022, January 2023 and August 2023. The purpose was to facilitate working-capital requirements of the firms, it says. An application on behalf of Cabriz to enter the case into the fast-track Commercial Court was rejected by Mr Justice Mark Sanfey. He said it was a requirement of the commercial list that parties should move with expedition, but in this case while there was default in December 2023 it was not until April of this year that the demand for payment was made. There had not been expedition in this case, the judge said, and he would not include it in the commercial list. This means the matter must now go through the normal High Court list. Earlier this month, the High Court appointed an interim examiner to Workman's Club Ltd, part of the former Press Up group founded by Mr McKillen Jr and Matthew Ryan. It was renamed Eclective Hospitality Group in February following its takeover by the London-based financial firm Cheyne Capital. The application for court protection followed a demand for payment of €4.5m in respect of guarantees on loans drawn down by property-owning companies outside of Cheyne Capital's control. Venues within the Workman's Club Ltd include the restaurants Angelina's, Doolally, and Isabelle's, and the pubs Peruke & Periwig, Mama Yo and Vintage Cocktail Club, as well as the Workman's Club itself, a live-music venue in Temple Bar. Their premises are all leased. It has a total of 362 employees, 55 of whom are full time. During the due diligence process undertaken last year as part of a restructuring, it was discovered the company had given guarantees to Relm Capital in respect of borrowings by other companies controlled by Mr McKillen Jr. Relm Capital issued demands to Workman's Club Ltd for payment of €4.5m in respect of the guarantees last March.
Business Mayor
07-05-2025
- Business
- Business Mayor
Dean hotels lost €8.8m in year before sale to investors
The company behind the Dean chain of hotels lost more than €8.8 million in the year before Paddy McKillen jnr sold a majority stake in the group to US and UK investors. New accounts filed in Dublin by Warlington Key reveal the group generated a turnover of close to €12.8 million in the year, €6.6 million of which came from food and beverage sales. Room and accommodation revenues reached €5.6 million. Warlington Key, which Mr McKillen jnr and his business partner Matt Ryan incorporated in 2022, was used in an inter-group transaction to acquire the trading entity behind the Dean group, Holtend Ltd, in May 2023 for €13.3 million. Proceeds from the transaction, which split the Dean Group from the wider Press Up hospitality group, were used to repay the group's banking facility with Cheyne Capital, according to the most recent set of accounts for Holtend. Cheyne Capital is the London-based alternative lender that separately acquired a 95 per cent stake in the Press Up last year after turning €25 million of debt into equity in the business. Administrative expenses at Warlington Key, including wages and salaries, topped €10.4 million in 2023, but exceptional costs of €4.5 million related to management services costs within the group dragged the company to a €3.7 million operating loss for the year. It meant that before tax, the company lost some €8.8 million, owing its lenders some €3.4 million in interest payments on its borrowings at the end of 2023. Mr McKillen jnr and Mr Ryan sold a majority stake in the Dean Hotel group to British property group Lifestyle Hospitality Capital and US investment giant Elliott Investment Management in a transaction completed in April 2024. Read More The Art of Marketing With Raja Rajamannar Initially reported in late 2023, the portfolio of hotels included in the deal at the time comprised the Dean Dublin, the Mayson, the Devlin, the Dean Cork and the Dean Galway. Three other Press Up-operated hotels – the Clarence Hotel on Wellington Quay, the Leinster Hotel on Lower Mount Street, and the Glasson Lakehouse near Athlone in Co Westmeath – were eventually added to the deal, which valued the portfolio at some €355 million. Separately, Cheyne Capital last week petitioned the High Court to have an examiner appointed to Workman's Club, the former Press Up company behind some 12 venues in Dublin, including the eponymous bar and nightclub on Wellington Quay. The court heard the immediate cause of the court application was a demand from the group's financiers RELM Capital for some €4.5 million in March.
Irish Independent
02-05-2025
- Business
- Irish Independent
Workman's Club Ltd applies for examinership
The company is part of the former Press Up group, which was renameds Eclective Hospitality Group in February following its takeover by the London-based financial firm Cheyne Capital last year. The application for court protection was triggered by demands in respect of guarantees on loans drawn down by property-owning companies outside of Cheyne Capital's control. Patrick Sheehan, the chief restructuring officer of Eclective, said: 'The decision to petition the courts for protection for Workman's Club Limited is a necessary step to protect jobs, maintain operations, and to secure the long-term sustainability of the business. Its current challenges stem from legacy issues and, since assuming control, Cheyne Capital has acted in good faith and committed significant financial resources to stabilise the business. 'Despite these efforts, it is clear examinership is required to address these historic issues to put the company on a sustainable path, and it is business as usual at all our venues.' Venues within The Workman's Club Ltd include the restaurants Angelina's, Dolally, and Isabelle's and the pubs Peruke & Periwig, Mama Yo and Vintage Cocktail Club, as well as the Workman's Club itself, a live-music venue in Temple Bar. It has a total of 362 employees, 55 of whom are full time. It is not envisaged that any will be made redundant. The annual turnover of the company is approximately €29m. During the due diligence process undertaken last year as part of a restructuring, it was discovered the company had given guarantees to RELM Capital in respect of borrowings by other companies controlled by a former shareholder. The potential exposure in respect of those guarantees is believed to be about €9.9m. RELM Capital issued demands to Workman's Club Ltd for payment of €4.5m in respect of the guarantees last March. Management is concerned that demands could be issued for other guarantees amounting to €5.4m. These demands, and the fact that there are insufficient realisable assets to make repayment, led to the decision that the company is insolvent. ADVERTISEMENT Learn more The vacant Odessa nightclub property on Dame Court, which the company is leasing at a cost of about €200,000 a year is now considered an onerous lease given the cost of its refurbishment. The landlord is said to be insisting that reinstatement works to the value of about €1.8m be carried out before it is handed back. The lease was entered into seven years ago with a plan to convert the Odessa into a hotel and restaurant. Some interior work was done, including demolition, which has led to the need for reinstatement. The company is not in a financial position to comply with the landlord's request. Cheyne Capital took over the group last year after turning €25m of debt into equity. Press Up was originally formed in 2009 by Paddy McKillen Jr and Matt Ryan. At its peak it had more than 50 venues and 2,000 employees, and a chain of hotels that were sold two years ago. There has been an investment of up to €18m by Cheyne so far to stabilise and restructure the group. The current outstanding debt is €46.1m. Management entered into Phased Payment Agreements in January with Revenue on its legacy debt, which has been kept up to date. Payment plans have been agreed with key creditors to pay down historic creditor balances Eclective now employs about 850 staff across 24 venues in Dublin. Among the changes it has made since taking over is opening a new Asian restaurant, Kaldero, in the premises previously used by Press Up's Wagamama on St Stephen's Green.
