Pacific Hunter ownership shifts to lenders following debt troubles

AUSTRALIA – Restaurant operator Pacific Hunter has transitioned ownership from Quadrant Private Equity to its creditors following significant debt challenges.

The operator’s latest accounts filed in December 2023 revealed a loss of US$75.7 million and debt amounting to US$449.2 million.

Private credit fund and the operator’s key financier Metrics Credit Partners now oversees its operations after Pacific Hunter was unable to pay back its substantial debt.

According to market analysts, the transition marks a significant change in the Australian restaurant sector, since the operator generates, on average US$250 million in annual revenue and is one of the country’s largest restaurant operators.

Quadrant Private Equity revealed its decision to transfer ownership of the operator was induced by frequent unsuccessful attempts to restructure the operator’s finances.

The ownership transfer precedes the resignation of previous directors Tom Pash, and Gareth Woodbridge from Quadrant Private Equity on October 3.

Finance specialists Marcus Derwin, Dan Ratner, and Eveline Albarracin have taken over the helm of Pacific Hunter and will help in the transition.

Frank Tucker, Metrics Credit Partners’ CEO, said, “Under Metrics’ strong leadership, we will focus on delivering quality venues with excellent customer service and hospitality experience.”

The roots of the operator’s financial troubles began when Quadrant Private Equity acquired and merged several restaurant groups under Pacific Hunter, accumulating debt. The private equity firm also could not inject additional capital because of limited funds.

Notable transactions that have contributed to the operator’s financial troubles include the purchases of Rockpool Group from celebrity chef Neil Perry in 2016 and Urban Purveyor Group for US$175m in 2015.

The celebrity chef has since departed from Rockpool Group to Margaret in Sydney’s east, while Quadrant Private Equity rebranded the business into Pacific Concepts and Hunter Street Hospitality.

The operator’s debt struggles have been exacerbated by the COVID-19 pandemic and rising costs. The mitigation measures by most governments during the pandemic limited restaurant occupancy, resulting in diminished sales and demand.

The restaurant sector has also struggled with high inflation and increased costs of raw materials and ingredients. This cost pressure was translated to customers via higher prices, diminishing demand.

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