Paddy McKillen Jr confirms the takeover of his Press Up group by ...

A deal is being finalised whereby the London-based lender is taking control of Press Up, and injecting fresh capital. It is understood that while agreement has been reached, the deal has not been signed.

In his first statement on the takeover, Mr McKillen Jr said it was a source of pride to him how Press Up, which employs about 935 people, had introduced “authentic concepts to the Dublin cityscape”, such as the Stella Cinema in Rathmines and the Workman’s Club in Temple Bar.

“In a challenging period for the sector, this transaction is really positive, and allows Press Up to begin the next chapter in its story,” he said.

Today's News in 90 seconds - 18th September 2024

“Cheyne has been a very supportive partner for a number of years, and when we first began discussing with them about taking an equity position in the business towards the end of last year, it became clear straightaway that this was the best path forward.

“We‘re excited for the future and for the business to be able to focus on providing outstanding hospitality experiences for our customers – and are also delighted to be staying involved, retaining a shareholding as well as board representation.”

In one of its first moves, however, Cheyne has appointed KMPG’s Shane McCarthy and Cormac O’Connor as receivers to three restaurant chains within the Press Up group.

The three are Elephant & Castle, which has several outlets including in Temple Bar and Rathmines; Wagamama, which has restaurants in Dublin city centre and Dundrum; and Wowburger, which has two restaurants in Dublin city centre. One of these, based on Parnell Street, is closing.

At one point, the London fund was owed more than €45m by companies within the group

Trading at the other restaurants is to continue as normal. The rest of the Press Up Group, which includes Captain America’s diner, is not affected by the appointment of the receivers.

In a statement Patrick Sheehan, the newly appointed Chief Restructuring Officer of the group, said: “Press Up is delighted to have the support of long-standing partners who know the business well and who are excited about the opportunities in the Irish market.

“This partnership will enable Press Up to focus on delivering a quality experience to all its loyal customers as a leading hospitality group in Ireland.”

It has been reported that Cheyne Capital may be prepared to invest up to €20m into the group as part of the takeover deal. At one point, the London-based fund was owed more than €45m by companies within the group.

It emerged last weekend that Mr McKillen Jr had stepped away from the day-to-day operations of the business, and it is understood his stake in the company will now be about 10pc.

Matt Ryan, his former schoolmate and the co-founder of Press Up, has stepped away altogether. He is now working in Tank Environmental, a new services business with Emmet O'Neill.

In recent months, Press Up has been trying to sell a number of pubs in the group, and did manage to sell some restaurants, while closing others, such as the Union Café in Mount Merrion.

Some landlords had been pursuing Press Up for payment through the High Court.