WholesaleInvestor

13 April 2010

Young pub baron Rick Munday's empire collapses

Source: smartcompany.com.au

Just six months after Rick Munday was listed on the BRW Young Rich list with a fortune of $114 million, his pub empire has been placed in receivership by its main lender, National Australian Bank.

Munday Group, which owns eight leaseholds pubs and two restaurants in Victoria, has been trying to sell its portfolio since late January, when Munday said the business had attracted strong interest from private equity groups who were moving back into the pub sector.

But an initial sales campaign that ended in mid March failed to flush out a buyer. The portfolio remains on the market through agents Jones Lang LaSalle, who are marketing the pubs for $45 million.

However, it remains unclear whether a sale at this price would cover the level of debt within the Munday Group.

Insolvency firm PPB is now in control of the 17 entities associated with the Munday Group. The company operates well-known inner city Melbourne pubs including the Golden Nugget in the Melbourne CBD, Players on Lygon in Carlton and The Court Jester in Prahran.

Munday also owned pubs in regional Victoria, including The Whalers Inn in Warrnambool, The Grand Hotel in Frankston and The Golden Fleece Hotel in Melton.

In total, Munday Group controls 432 gaming machines.

To view original article in full click here